Biggest EV Stories Of The Week: Elon Musk's FSD Update, GM's Escalade IQ Pricing, Rivian-Lucid Q2 Divergence

author: FutureCar Staff    

Electric vehicle stocks faced a downturn in the week ending on Aug. 1, as concerns over inflation weighed on the broader market. Additionally, stocks in the sector reacted to earnings news.

Here are the key events that unfolded in the EV space during the week:

The unexpected resignation of Tesla's CFO, Zachary Kirkhorn, took many by surprise. Although CEO Elon Musk's tweet did not indicate any disagreement between Kirkhorn and the company, the wording of Kirkhorn's announcement sparked speculation about underlying issues.

Future Fund's Gary Black suggested that there might have been disagreements regarding the company's strategy, such as price cuts, margins, or even succession.

PepsiCo's Transformation and Strategy Director, Amanda DeVoe, highlighted the importance of the Tesla Semi for the company's business practices. She emphasized that PepsiCo and its employees have quickly adapted to the evolving landscape in commercial logistics. As part of their green-energy initiative, PepsiCo purchased 21 Semi Class 8 trucks from Tesla in December 2022.

In response to a query about the wider availability of Tesla's latest version of the full-self driving software, Musk stated that Version 11.4.7 would likely have a broader release within a week. He also mentioned that Version 12 is currently undergoing testing by the company's QA drivers and described it as a "mind-blowing" rewrite.

General Motors Corp. unveiled the electrified version of its Cadillac, called the 2025 Cadillac Escalade IQ. The pricing strategy for the Escalade IQ surprised Future Fund's Gary Black, as he compared it to a rival offering from Tesla that has superior performance metrics but is priced lower.

EV startups Rivian Automotive, Inc. and Lucid Group, Inc. reported earnings for the week. Rivian's revenue and loss per share exceeded consensus estimates, leading analysts to praise the company's results. Lucid's quarterly results disappointed, but the stock remained stable due to the company maintaining its full-year guidance.

GM's Cruise and Alphabet, Inc.'s Waymo received approval from the California Public Utility Commission to expand their driverless operations in San Francisco. Deepwater Asset Management's Gene Munster sees Tesla and Waymo as the primary beneficiaries of the wider adoption of self-driving technology.

Nio, Inc. denied rumors of a partnership with German luxury automaker Mercedes-Benz Group AG. Speculation about a potential partnership arose after Nio's competitor, XPeng, Inc., announced a collaboration with Volkswagen AG.

For the week, the performances of various EV stocks were as follows:

• Tesla: -4.42%
• Nio: -12.36%
• XPeng: -11.14%
• Li Auto, Inc.: -11.72%
• Fisker, Inc.: -24.50%
• Workhorse Group, Inc.: -8.38%
• Lordstown Motors Corp.: -27.22%
• Hyzon Motors, Inc.: -15.23%
• Canoo, Inc.: -14.61%
• Rivian: +0.30%
• Lucid: -18.30%
• Faraday Future Intelligent Electric, Inc.: -7.41%
• Arrival: -22.00%
• Nikola Corp.: -18.30%

Photo: Shutterstock

FutureCar Staff