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Shares in several electric vehicle (EV) makers surged in recent weeks on a series of positive catalysts, including better-than-expected Q2 deliveries that suggest demand for EVs is coming back.
Both Tesla (NASDAQ: ) and Rivian Automotive (NASDAQ: ) reported solid Q2 production and delivery figures to send their shares higher on Monday. Moreover, Chinese EV startups also reported delivery figures for June, with companies like XPeng also benefiting from the unveiling of new EV models.
U.S. Leading the EV Race
Tesla shares surged almost 7% on Monday after Elon Musk’s company reported stronger-than-expected second-quarter deliveries and production numbers. Tesla said it delivered 466,140 EV units for the quarter ending June 30, easily ahead of the consensus of 445,925 delivered cars. The EV company said it delivered 19,225 Model S and X units in the second quarter, in addition to 446,915 Model 3 and Y deliveries.
On the production front, Tesla said it made 479,700 new EV units, again better than the consensus of 456,617 cars. As expected, investors reacted positively to Tesla’s Q2 delivery figures after recent price cuts inspired stronger demand.
“Price cuts implemented early in 2023 have paid major dividends for Musk & Co. as demand appears to remain very strong and production efficiencies have allowed for the massive deliveries beat this quarter,” Wedbush analyst Daniel Ives, and a prominent Tesla bull, said in a note to clients.
The quarterly deliveries report is a closely-watched development by Wall Street analysts and investors. It practically de-risks the upcoming earnings report, although analysts will be interested to see how much did the recent price cuts affect Tesla’s gross auto margins.
Tesla will report its financial results for the second quarter of 2023 after market close on July 19, 2023.
Elsewhere, Rivian Automotive (NASDAQ: RIVN) also reported production and delivery numbers for Q2 that beat the average analyst estimate. The maker of the R1T pickup truck said it delivered 12,640 cars in Q2, ahead of the Street at 11,302. Rivian also produced nearly 14,000 EV units, higher by almost 1,500 than the consensus.
“These figures remain in line with the company’s expectations, and it believes it is on track to deliver on the 50,000 annual production guidance previously provided,” the company said in a press release.
Shares surged as much as 17.4% on Monday. The EV company is expected to report Q2 results on August 8.
Ives added that reports from Tesla and Rivian “are just a drumroll to much broader electric vehicle adoption, with [General Motors] and others diving in with their own models.”
The surge in Tesla and Rivian shares signals the return of demand for EV cars. Moreover, Tesla’s decision to open up its Supercharger network for key U.S. rivals, including Rivian, Ford, and General Motors (NYSE: ), has also improved the overall sentiment.
Lucid Motors, another U.S.-based EV maker, also saw its shares gain in recent weeks after the company announced a partnership with Aston Martin, a legendary British carmaker. It was reported last week that two car companies will partner on accelerating Aston Martin’s transition to EVs.
In a partnership estimated to be worth more than $450 million, Lucid and Aston Martin agreed to a long-term strategic technology partnership that will see Lucid supply the latter with an EV powertrain and battery systems.
“In line with its strategy, Aston Martin selected Lucid, recognizing the profound benefits of adopting its world-leading electric drivetrain technology, exemplified by the breakthrough 516-mile EPA-estimated range achieved by the Lucid Air Grand Touring,
EV Stocks Rally Globally as Demand Returns
