Electric vehicle inventories fell along with the broader market in the week ending June 3, with Tesla, Inc. TSLA leading the declines. The broader market paused for breath after the previous week’s rally. A strong nonfarm payrolls report on Friday rekindled fears of a Fed rate hike and sent stocks plummeting.
Here are the key events that happened in the EV space during the week:
Musk Spooks Tesla, Markets: Tesla’s outspoken CEO Elon Musk proved the loss of the company’s stock with his brief communications to employees, first with his stance on returning to the office and later with his warning of job cuts.
Musk sent two separate emails to employees this week, threatening to fire those who hesitate to return to their jobs. The logic behind the mandate is that great products cannot be made just by “telephoning”.
He dropped a second bombshell with another internal memo regarding Tesla’s global hiring freeze and plans to cut 10% of jobs. This time, the CEO blamed the proposed actions on a “super bad feeling” about the economy. A consolation, however, is that the removal only applies to salaried employees and the company will continue to hire hourly workers for building cars, assembling batteries and solar installations.
Among other things, delivery times for Tesla’s Model Y vehicle have increased significantly over the past few days, leading to speculation that it could be due to a slow ramp at Giga Berlin or a delay in the shipments from Giga Shanghai.
Musk also revealed via Twitter that AI Day, which was originally scheduled for August 19, is being pushed back to October 30. The reason given was the time needed to come up with a working prototype of the company’s Optimus humanoid robot.
Investing in Cathie Wood’s Ark bought more Tesla shares this week as it racked up $1.3 million worth of stock on Tuesday.
Related Link: Does Elon Musk Risk Losing His Talents With Tesla Returning to Office?
May deliveries of the Chinese EV trio are better than feared: Chinese electric vehicle manufacturers listed in the United States Nio, Inc. NIO, XPeng, Inc. XPEV and Li Auto, Inc. LI reported shipments for May that showed both year-over-year and quarter-over-quarter increases. All three noted that the situation, precipitated by COVID-19 lockdowns in China, is improving, but warned that deliveries remain limited due to supply and logistics issues.
Warren Buffett –supported BYD Company Limited BYDDF continued to see strong sales, with May shipments up 185% year-over-year to 53,349 units.
GM slashes Chevy prices: General Motors Corporation GM chose to get competitive by pushing his Chevrolet Bolt EV, which was hit by a huge recall due to a fire hazard. The company has dropped the prices of the Bolt EV and Bolt EUV 2023 models by $5,900 and $6,300, respectively.
Ford focuses on fat reduction: Ford CEO Jim Farley told an investor conference this week that the company needed to revamp its business model and cut spending if it wanted to stay competitive in the electric vehicle market. Farley said the company shouldn’t rely on advertising to boost sales of its hugely popular models, such as the F-150 Lightning.
The founder of Nikola opposes the sale of shares: Nikola Company NKLA founder and former president Trevor Milton voted against a proposal by the company to clear new shares to potentially raise capital, according to reports. This prompted the company to adjourn the annual shareholder meeting to June 30 in a bid to drum up support for the proposal.
EV stock performance for the week:
Related Link: Why This Tesla Analyst Thinks The Worst Might Be Behind For The Electric Vehicle Pioneer