XPEV - Tesla's Double Miss Spooks Investors Rivian CEO Allays Liquidity Concerns Lucid's Underwhelming Q3 Deliveries And More: Biggest EV Stories Of The Week | Benzinga
Electric vehicle stocks fell across the board in the week that ended on Oct. 21 amid the broader market weakness and a disappointing earnings report from frontrunner Tesla, Inc. (NASDAQ:TSLA). Shares of the company closed at their worst level since June 1.
Here are the key events that happened in the EV space during the week:
Tesla Disappointing Q2, Price Tinkerings, Cybertruck News And More: Tesla’s third-quarter earnings and revenue missed expectations, sending its stock sharply lower. The third-quarter marked the first time since the second quarter of 2019 that the company has missed both earnings and revenue expectations. Auto margin, excluding regulatory credits, a key operating metric analysts focus on, came in at 16.3%, well below the consensus estimate of 17.7%.
Future Fund’s Gary Black called the quality of earnings poor, given that the regulatory credits were notably higher than expected and that the tax rate was less than expected.
More importantly, Tesla CEO Elon Musk’s comments on the earnings call did not go down well with investors. He harped on the economic conditions and the difficulty in ramping up Cybertruck production, while failing to offer any clarity on the margin outlook. The company did, however, affirm its long-term delivery growth target of 50%+.
Following the quarterly results, Tesla made price adjustments in several regions. While the company raised the prices of its Model X Plaid all-wheel drive trim by 5.6% to $94,990 in the U.S., it cut ...