What You Missed This Week in EVs and Clean Energy

Institutional investors and professional traders rely on The Fly to keep up-to-the-second on breaking news in the electric vehicle and clean energy space, as well as which stocks in these sectors that the best analysts on Wall Street are saying to buy and sell.

From the hotly-debated high-flier Tesla (TSLA), Wall Street’s newest darling Rivian (RIVN), traditional-stalwarts turned EV-upstarts GM (GM) and Ford (F) to the numerous SPAC-deal makers that have come public in this red-hot space, The Fly has you covered with “Charged,” a weekly recap of the top stories and expert calls in the sector.

TESLA PROBE: NHTSA reported opening an investigation on “Loss of steering control”- The Office of Defects Investigation, ODI, is opening a Preliminary Evaluation or PE, on 2023 model year Tesla Model 3 and Model Y vehicles due to reports of inability to steer the vehicle and the loss of power steering, the agency said in a release. ODI has received twelve complaints alleging loss of steering control and power steering in 2023 Tesla Model 3 and Model Y vehicles. Five reports indicate an inability to steer the vehicle. Seven additional reports cite loss of power steering resulting in increased effort to control the vehicle. A PE has been opened to assess the scope, frequency, manufacturing processes, and severity associated with this condition, added the report.

Click here to check out Tesla’s recent Media Buzz Sentiment as measured by TipRanks.

PRICE CUTS: Electric vehicle maker Lucid (LCID) cut prices of its Air luxury sedans by as much as $12,400 as part of an offer amid rising competition in the U.S. EV industry and a price war sparked by Tesla, Reuters‘ Abhirup Roy reports. Lucid reduced the price of the Air Pure by $5,000 to $82,400 from $87,400, and cut prices of the more powerful Touring and Grand Touring versions by $12,400 to $95,000 and $125,600, adding that the offer would be valid as long as supplies last.

CYBERTRUCK COMPETITION: Cantor Fitzgerald downgraded Rivian Automotive to Neutral from Overweight with a price target of $29, up from $27. The firm cites valuation for the downgrade with the shares up 50% year-to-date. Rivian is also facing increased competition from Tesla’s Cybertruck, which has over 1.2M reservations, as well as from General Motors and Ford Motor, Cantor tells investors in a research note. The firm views Rivian shares as “properly valued” and has become “more conservative” in the short term.

EARNINGS GROWTH: HSBC upgraded XPeng (XPEV) to Buy from Hold with a price target of $22, up from $15.40. The firm sees the collaboration with Volkswagen (VWAGY) as an important milestone for the development of autonomous driving. As EVs become increasingly commoditized, HSBC sees differentiated software as an important competitive advantage which will boost sales. A tie-up with a global brand like Volkswagen should also increase traction with consumers. The firm also raised its 2024-2025 earnings forecasts on higher auto sales and growth in software revenue.

RESEARCH TACTICAL IDEA: Morgan Stanley named Nio (NIO) as a “Research Tactical Idea” on Tuesday given the belief that the share price will rise in absolute terms over the next 15 days after the company reported “record-setting deliveries” of 20,462 units in July. The firm keeps an Overweight rating and $18.70 price target on Nio shares.

MOVING TO THE SIDELINES: National Bank downgraded Lion Electric (LEV) to Sector Perform from Outperform with an unchanged price target of C$2.75 post the Q2 results. The company has seen continued progress on its production ramp-up and funding risk has been reduced, the firm tells investors in a research note. However, with the shares up 23% in recent months, National Bank moves to the sidelines on valuation.

EXECUTION, MARGIN PERFORMANCE: Janney Montgomery Scott upgraded Sunrun (RUN) to Buy from Neutral with a $32 fair value estimate following what it calls “an operationally solid quarter.” While acknowledging there is “a high level of market pessimism on residential solar currently,” the firm cites several reasons for the upgrade, including Sunrun gaining market share from small and large competitors and the fact that its margins are expanding through higher battery attach rates, ITC adders and lower component pricing. Despite a volatile solar market, the company is executing on its plan and the firm expects “this continued steadiness will come through over the next several quarters in customers additions and margins,” Janney tells investors.