Electric vehicle buzz: Tesla drops to 2022 low, Lordstown jumps after Foxconn investment, sector-wide volatile trading continues
Lordstown Motors (NASDAQ:RIDE) was the biggest gainer in the electric vehicle sector on Tuesday after the electric vehicle maker's broadened partnership with Foxconn generated optimism. Shares were up 12.55% at 10:32 a.m. on Tuesday after being more than 20% higher earlier in the session
Other EV stocks that may be riding along with Lordstown include Mullen Automotive (MULN) +7.75%, Microvast Holdings (MVST) +4.48%, Tritium DCFC Limited (DCFC) +3.95% and Lightning eMotors (ZEV) +3.35%.
On the flip side, Arrival (ARVL) peeled off 29.32% after reporting a larger EBITDA loss than a year ago and updating on its cash position. Aurora Innovation (AUR) -9.25%, Ouster (OUST) -7.85%, and Sono Group (SEV) -6.57% were also notably lower.
Tesla (TSLA) has also now drifted to its lowest level of 2022 with a 4.05% drop on Tuesday as a combination of factors play into sentiment. Analysts have pointed separately to general macroeconomic factors, supply chain risk due to China zero-tolerance, and the valuation reset across growth stocks due to higher interest rates as factors. Also in play, to a lesser degree, are the implications of electric vehicle tax credits under a new Congress and what some are calling Elon Musk fatigue with investors. On the news front, the NHTSA also announced a recall of certain 2017-2021 Model S and Model X vehicles for a power steering assist issue. The recall totaled 40,168 vehicles. Of note, many of Tesla's vehicles are fixed with over-the-air updates. Tesla (TSLA) also announced that 54,504 units were exported for the month of October, up 34% Y/Y and up 887% M/M.