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Investing.com — Right here is your weekly Professional Recap of the previous week’s largest headlines within the electrical automobile area: Elon Musk claims WSJ report ‘completely false’; VinFast posts spectacular outcomes; and EVs are taking up EU.
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Musk Denies stories of Saudi growth
Conflicting stories have emerged this week concerning Tesla’s (NASDAQ:) potential growth plans in Saudi Arabia. Initially, The Wall Road Journal reported that the EV large was in preliminary discussions with Arab authorities about establishing a producing facility within the nation. Citing unnamed sources, the report highlighted potential challenges stemming from the complicated relationship between Tesla’s CEO, Elon Musk, and Saudi officers, in addition to Saudi Arabia’s current collaboration with electrical automobile competitor Lucid Group (NASDAQ:).
If a deal had been to materialize, it might have a major affect on Tesla’s bold aim of promoting 20 million autos yearly by 2030, as Elon Musk has beforehand urged. This goal may require round twelve extra manufacturing services worldwide. At the moment, Tesla manufactures autos in the US, China, and Germany, with plans to broaden operations into Mexico.
Nonetheless, the story took an sudden flip when Elon Musk himself took to his social media platform “X” to disclaim The Wall Road Journal’s report. Musk dismissed the article as “one other completely false article from the WSJ.”
The Wall Road Journal had based mostly its report on info from unnamed sources who acknowledged that the talks between Tesla and Saudi Arabia had been nonetheless of their early levels and will doubtlessly collapse.
Shares of TSLA reached a weekly excessive of $272.13 on Wednesday earlier than ending the week down 8%.
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Vinfast impresses with inaugural report
Vietnamese automaker VinFast Auto (NASDAQ:) is making vital strides. In its first quarterly report since going public in August, Vinfast introduced a outstanding 131.2% enhance in income. The corporate reported Q2 income of seven.95 trillion Vietnamese dong ($327 million) for the interval ending on June thirtieth. This spectacular progress might be attributed to a considerable surge in deliveries, with 9,535 autos delivered through the second quarter, marking a greater than fivefold enhance in comparison with the primary quarter. Within the first half of the yr, Vinfast reported a complete of 11,315 deliveries, showcasing its increasing presence within the electrical automobile market.
Regardless of a historical past of losses, Vinfast achieved a valuation of roughly $85 billion upon its Wall Road debut, surpassing the valuations of U.S. automakers Ford (NYSE:) and Normal Motors (NYSE:). This valuation surge was fueled by elevated supply quantity and reductions in analysis and growth bills, resulting in a discount in web loss from 13.65 trillion Vietnamese dong to 12.54 trillion Vietnamese dong.
Moreover, Vinfast CEO Thuy Le revealed plans to ship the primary batch of electrical autos to Europe later this yr, following regulatory approval. Roughly 3,000 VF8 crossover autos will probably be shipped to France, Germany, and the Netherlands through the fourth quarter from VinFast’s manufacturing facility in northern Vietnam.
This marks a major growth, surpassing their earlier goal of delivering 700 autos by July of the earlier yr. The transfer into the European market is strategically timed, given the European Union’s investigation into Chinese language electrical automobile producers, doubtlessly creating a gap for Vinfast.
Shares of VFS ended the week down 3% to $15.63/sh.
EV Surge in Europe
EVs made vital strides within the European market in August, with information launched by the European Car Producers Affiliation (ACEA) revealing that barely over 20% of all new vehicles bought within the European Union had been totally electrical. This marked the primary occasion the place EVs constituted greater than a fifth of whole gross sales, with near 1 million fully-electric autos offered within the EU over the preliminary eight months of 2023.
Volkswagen (OTC:), Europe’s main automotive producer, reported a notable 21.2% enhance in gross sales for August, based on the ACEA. Stellantis (NYSE:) and Renault (OTC:) additionally skilled gross sales progress, with will increase of 6.4% and 22.3%, respectively.