Tesla China's Deep Price Cuts, Rivian Hit by Production Issues, Sony-Honda Makes a Splash with "Afeela" and More: The Week's Biggest EV Stories

Electric vehicle stocks saw a mixed close in the holiday-shortened week that ended Jan. 6. Shares of Tesla, Inc. TSLA continued to be slaughtered amid concerns over the outlook for demand.

Now here are the key events that happened in the EV space during the week:

Fourth-quarter Tesla deliveries, China price cuts and more: Tesla shares fell more than 12% on Tuesday after the company reported lighter fourth-quarter deliveries provided that. The numbers reflect slowing demand amid an economic downturn and competition that is shrinking the company's market share.

Days later, Tesla acted with a steep price cut for its Chinese-made vehicles. The price cuts were in the range of 5.7% to 13.5% and applied to Model 3 and Model Y vehicles manufactured at the Giga factory in Shanghai. While analysts called the move a smart move to stem market share erosion, investors sold the stock on fear of further weaker demand and lower margins caused by price declines. price.

In another development, Tesla has listed Model S and Model Y vehicles for sale on its Chinese website. These vehicles are not locally manufactured, but must be exported from the United States.

As the Internal Revenue Service vehicle qualification standards for the electric vehicle tax credit authorized under the Inflation Reduction Act of 2022 have negative for Tesla, CEO Elon Musk expressed concerns about the tax incentives and called on customers to speak to the federal agency. The IRS had sought public input regarding the tax credit rules.

See also: Best EV Stocks

Rivian Production Misses Target: Rivian Automotive, Inc. Shares of RIVN hit a new 52-week low at $15.84 this week after the electric vehicle maker announced quarterly and annual production and delivery updates. The company, which is halving its production forecast to 25,000 in early 2022, missed the figure by several hundred. Production was 24,337 units and shipments were 20,332 units, with CEO RJ Scaringe saying the global supply chain crisis has hit production.

Sony-Honda unveils electric vehicle prototype: consumer electronics company Sony Group Corp. SONY and Honda Motor Co. HMC, which announced a joint venture last year to develop electric vehicles, unveiled a prototype of their first car at the 2023 Consumer Electronics Show this week. The car, named Afeela, resembles a mid-size sedan, with deliveries expected by 2025.

Lucid and Rivian win lawsuit against direct sales: Lucid Group, Inc. LCID and Rivian have won a lawsuit brought by Illinois auto dealers over their direct selling models. An Illinois state trial court has dismissed a lawsuit filed by the Illinois Automobile Dealers Association, seeking a ban on the direct sale of vehicles to Illinois consumers.

Lordstown Production Update: Lordstown Motors Corp. RIDE said it produced 31 vehicles through January 3, 2023 and delivered six to customers. The company also said it expects a slower production rate in the first quarter of 2023, citing supply chain constraints, particularly hub motor components.

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