Shares of electric vehicle manufacturers fell across the board in the week that ended on Jan. 5 amid the pullback in equity markets in the new year. Fourth-quarter deliveries report from market leader Tesla, Inc. (NASDAQ:TSLA) failed to rev up the space as a risk-averse mood and industry-specific fundamental issues weighed it down.
Here are the key events that happened in the EV space during the week:
Tesla Q4 Sales, Recalls And More: Tesla hit the 1.8-million-unit delivery goal for 2024 as the company sold 484,507 EVs in the fourth quarter. The fourth-quarter sales exceeded the Wall Street consensus and The Street’s whisper numbers. The outperformance was viewed as positive by analysts, but most remained cautious regarding the core auto margin trajectory and the 2024 deliveries guidance, which will be known when the company reports its full-year results on Jan. 24.
One noteworthy news item that made waves was Tesla ceding its EV crown as the biggest manufacturer in terms of volume to the Warren Buffett-backed Chinese EV manufacturer BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF). Tesla enthusiasts, however, underplayed the development and said BYD won’t be able to produce high-quality EVs that can sell in Europe and North America.
CEO Elon Musk clarified on the Tesla-BYD comparison and said, “Tesla is an AI/robotics company that appears to many to be a car company.”
Tesla also had to deal with negative headlines regarding the recall of its EVs in China. On Friday, a release from China’s State Administration for Market Regulation showed that the company was recalling 1.6 million vehicles in China due to concerns related to the misuse of its autosteer features. The recall was not a physical one and the issue would be rectified by over-the-air updates, the release said.
Rivian Not Out Of Woods Yet: Irvine, California-based Rivian Automotive, Inc. (NASDAQ:RIVN), which has pulled away from the rest of the startup crowd, released a mixed deliveries report this week. The company’s full-year and fourth-quarter production exceeded expectations. Rivian delivered 13,972 EVs in the fourth quarter compared to the consensus estimate of 14,114 units and the third-quarter delivery of 15,600 units.
Future Fund co-founder Gary Black shrugged off the deliveries beat as not too significant. For…
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