Yahoo Finance EV Roundup: TSLA Shareholders Back Musk's Pay, GM Trims 2024 EV Outlook & More
In an escalating trade dispute, the European Union (EU) imposed up to 38% additional tariffs on Chinese electric vehicles (EVs). This move is part of the EU's broader strategy to protect its car industry, which supports millions of well-paid jobs and is critical to the region's economic stability.The EU’s decision to slap China with higher tariffs follows a much more aggressive move by the United States last month.
On the news front, U.S. auto biggie General Motors GM trimmed its forecast for EV production and sales for 2024 amid cooling demand for the same.
Meanwhile, in a show of enduring faith for the EV giant Tesla’s TSLA visionary CEO, shareholders approved Elon Musk’s hefty pay package, currently valued at more than $45 billion (composed of stock options) during the company’s annual general meeting. Shareholders also voted in favor of the company’s headquarters’ shift from Delaware to Texas. In a separate development, Tesla is set to increase Model 3 prices in Europe due to potential higher tariffs by the EU on imported electric cars from China.
EV charging company ChargePoint CHPT and Porsche Cars North America have collaborated to integrate CHPT's network into the Porsche Charging Service. CHPT’s peer Blink Charging BLNK received "In Process" FedRAMP status for its EV charging. The manufacturer of zero-emission vehicles, Lion Electric LEV, got the final certification of its LionBattery HD battery pack.
While BLNK currently carries a Zacks Rank #2 (Buy), GM, TSLA, CHPT and LEV carry a Zacks Rank #3 (Hold) each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Last Week’s Top Stories
Tesla is set to raise prices for its Model 3 in Europe starting Jul 1, 2024.Notices regarding the price hike have been posted on Tesla’s websites in various European countries. The U.S. automaker has not disclosed the exact increase for the Model 3, which starts at $44,000 in Germany. In another development, shareholders voted in favor of Musk’s massive pay package.The saga of Musk’s pay package began in 2018 when it was first approved at a staggering $56 billion. However, earlier this year, a Delaware court invalidated it. This led to a fresh shareholder vote, which ultimately reaffirmed support for Musk.
Having said that, Musk needs court approval to receive the compensation, and the legal dispute over the compensation plan is far from over. Legal experts predict that the resolution of the lawsuit could take months. But the vote has boosted Tesla's position in ongoing litigation.
General Motors is reducing its expected sales and production of all-electric vehicles for 2024 due to slower-than-anticipated U.S. adoption of EVs. The company now anticipates producing 200,000 to 250,000 all-electric vehicles this year, down from the previous estimate of 200,000 to 300,000. GM expects EVs to comprise 8% of U.S. sales industrywide this year, which is lower than many other auto analyst forecasts of around 10% for 2024.
The EVs will become profitable on a production basis once they reach 200,000 units, a milestone still expected in the fourth quarter. In May, the company sold more than 9,500 EVs in North America. In the first quarter, EV sales were 16,425 units, representing 2.8% of GM's overall sales.
ChargePoint has partnered with Porsche Cars North America (“PCNA”) to integrate its network into the Porsche Charging Service. This collaboration will expand the number of available charging points for Porsche customers to more than 100,000 across North America. Timo Resch, president and CEO of PCNA, emphasized the partnership's role in broadening charging options and improving customer experience, especially with the upcoming releases of the Taycan and Macan Electric.
The My Porsche app will facilitate easy access to ChargePoint and partner stations, covering more than 75% of charging ports available to Porsche drivers. The integration is set to go live in the fourth quarter of 2024, aligning with Porsche’s adoption of the North American Charging Standard.
Blink has achieved the "In Process" designation from the Federal Risk and Authorization Management Program (FedRAMP) for its EV charging solutions. This milestone is crucial as full accreditation will allow government agencies to contract with Blink or its federal resellers for networked EV charging. Blink anticipates achieving full FedRAMP compliance by the end of third-quarter 2024.
FedRAMP ensures secure cloud services for federal agencies, which are committed to deploying 24,000 charging stations by 2035. Blink’s CEO, Brendan Jones, emphasized the importance of providing reliable EV charging for government agencies, highlighting the company's readiness to support the federal transition to EVs.
Lion Electric has achieved final certification for its LionBattery HD, a heavy-duty lithium-ion battery pack designed for its electric trucks, ensuring compliance with stringent safety standards. These 105 kWh batteries will power the Lion8 Tractor, an all-electric Class 8 commercial truck unveiled at the ACT Expo in Las Vegas.
This certification follows the previous approval of the LionBattery MD pack for medium-duty trucks and school buses. Lion’s facility, with a 1.7 gigawatt-hour annual capacity, can produce batteries for 5,000 vehicles per year. CEO Marc Bedard emphasized the company's commitment to innovation, safety and production efficiency, solidifying Lion Electric’s standing in North America's transportation electrification.
Price Performance
The following table shows the price movement of some of the major EV players over the last week and six-month period.
Image Source: Zacks Investment Research
What’s Next in the EV Space?
Stay tuned for the announcements of upcoming EV models and any important updates from the red-hot industry.
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General Motors Company (GM) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Blink Charging Co. (BLNK) : Free Stock Analysis Report
ChargePoint Holdings, Inc. (CHPT) : Free Stock Analysis Report
The Lion Electric Company (LEV) : Free Stock Analysis Report
