EV Market Competition Impacts Stocks Despite Recovery Signs

A recent report highlights mixed fortunes for electric vehicle stocks in 2024. While Tesla and Polestar show signs of recovery, concerns linger over competition and delivery targets. Investors remain focused on upcoming events that could significantly shift stock sentiments.

Date: 03-10-2024

AI Rating: 6

The report discusses the overall climate for electric vehicle (EV) investors in 2024, emphasizing the inconsistencies in stock movement among leading players such as Tesla, Polestar, and Nikola.

Tesla has experienced a recovery in stock prices, surging 22.2% last month, largely fueled by improved vehicle deliveries and optimism surrounding the upcoming Robotaxi event. Tesla achieved a significant recovery in Q3, delivering nearly 463,000 vehicles, indicating a 6.4% increase from the previous year. However, it is noteworthy that deliveries for the first half of 2024 dropped 6.5% compared to 2023, and reaching the goal of 2 million deliveries for the year remains in jeopardy as it would require over 700,000 in Q4.

Polestar Automotive showed strong performance with an 82% increase in Q2 deliveries compared to Q1. Investor enthusiasm for Polestar surged following this update, contributing to a 41% rise in its stock price. With a significant proportion of its shares sold short, the stock likely experienced a short squeeze, bolstering its price further.

Nikola faced challenges, with its stock down 80% year-to-date. However, the company reported wholesaling 88 hydrogen fuel cell trucks in Q3, accumulating a total of 200 trucks wholesaled over the year so far. The report highlights the competition Nikola faces from Tesla’s battery-electric trucks, which adds to its risk profile.

Stocks: TSLA PSNY NKLA