Australia markets closed

    +60.90 (+0.83%)
  • ASX 200

    +55.50 (+0.78%)

    -0.0031 (-0.46%)
  • OIL

    +1.07 (+1.44%)
  • GOLD

    -11.20 (-0.56%)
  • Bitcoin AUD

    +853.66 (+2.05%)
  • CMC Crypto 200

    +6.65 (+1.08%)

    +0.0006 (+0.09%)

    -0.0027 (-0.25%)
  • NZX 50

    -48.67 (-0.41%)

    +132.34 (+1.02%)
  • FTSE

    +11.31 (+0.15%)
  • Dow Jones

    +240.51 (+0.73%)
  • DAX

    +106.44 (+0.69%)
  • Hang Seng

    +90.98 (+0.45%)
  • NIKKEI 225

    +258.55 (+0.93%)

EV Roundup: LI Incurs Q3 Loss, WKHS Dims 2022 Forecast & More

China-based electric vehicle (EV) maker Li Auto LI unveiled third-quarter 2022 results. While the company posted narrower-than-expected loss, the bottom line deteriorated from the prior- year period. The electric delivery van maker Workhorse Group WKHS hosted its analyst day last week, highlighting its product roadmap and revising 2022 sales guidance.

To strengthen its EV charging potential, Blink Charging BLNK partnered with ZOOZ Power.Presently, there is a huge demand for ultra-fast charging around the world, and the trend is expected to rise. In light of the situation, building adequate power infrastructure to ensure that the grid is not constrained is the need of the hour. Blink and ZOOZ intend to address this issue with their joint solution.

Meanwhile, General Motors’ GM electric delivery van subsidiary, BrightDrop, has made its move into Canada’s market to promote sustainable transportation, with DHL as its first customer in the country. Also, last week, the U.S. auto giant launched Canada's first full-scale electric vehicle facility.

Last but not the least, Tesla TSLA grabbed the limelight with record-high deliveries in China last month, with the EV titan delivering more than 100,000 units from its Shanghai factory.  Meanwhile, the initial deliveries of Tesla Model S and Model X Plaid models also began in Germany last week.

TSLA currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Recap of last Week’s Key News

Li Auto incurred a loss per American Depositary Share (ADS) of 24 cents in the third quarter of 2022, narrower than the Zacks Consensus Estimate by a penny. In the year-ago period, the firm had posted break-even earnings. Revenues of $1,313 million were up 20.2% year over year on higher vehicle sales. Li Auto delivered 26,524 vehicles in the third quarter, up 5.6% year over year. The revenues generated from vehicle sales amounted to $1.27 billion, rising 22.5% year over year. Other sales amounted to $41.7 million, down 24%.Vehicle margin came in at 12% in the quarter under review.

As of Sep 30, cash and cash equivalents stood at around $5.3 billion. Total long-term debt was $1.26 billion. For the fourth quarter, Li Auto expects deliveries in the band of 45,000-48,000 vehicles, signaling a year-over-year decrease of 27.8-36.3%. Revenues are envisioned between $2.32 and $2.47 billion, indicating a year-over-year decline of 55.4-65.8%.

Blink signed a distribution agreement with ZOOZ Power, a leading supplier of flywheel-based power-boosting EV charging solutions, for the distribution, sale and deployment of ZOOZ’s kinetic power booster, the ZOOZTER 100. The solution uses advanced technology to store kinetic energy in flywheels to power EV DC fast chargers. Both companies are enthusiastic about the agreement as they seek to provide EV drivers with reliable and sustainable solutions and contribute their share toward carbon neutrality.

In another development, Blink announced that its management had approved three significant additions to its executive leadership with the appointment of Michael Battaglia as the chief revenue officer, Mark Pastrone as the  chief operating officer and Aviv Hillo, Esq. as the executive vice president of Mergers and Acquisitions. These appointments imply a focus on Blink’s accelerated growth and meeting the industry’s demand for reliable charging solutions on the back of rising EV sales.

General Motors opened Canada's first full-scale EV manufacturing plant. The financial help from the governments of Canada and Ontario enabled GM to completely retool the CAMI Assembly plant to develop BrightDrop’s fully electric delivery vans. GM began transforming CAMI for EV production on May 1, 2022. General Motors began production of the BrightDrop Zevo 600 electric delivery vans at its CAMI Assembly plant in Ontario on Dec 5, signaling a new chapter in Canada’s EV production and a significant step in the fight against climate change.

To cater to strong customer demand, CAMI expects to produce 50,000 Zevo vans annually by 2025. Scaled production is scheduled to begin with Zevo 600 models in January 2023 and Zevo 400 models in late 2023. BrightDrop Zevo is a great example of GM's Ultium EV architecture, and it is laudable that within less than two years, it has gone from concept to commercialization. BrightDrop also announced the initiation of commercial operations in Canada, with DHL as its first customer in the country.DHL Express Canada intends to add its first BrightDrop Zevo electric delivery vans to its fleet early next year.

Workhorse updated its 2022 projections. Logistic challenges and port delays on inbound cab chassis are adversely impacting the timing of the company’s shipments. As such, Workhorse has lowered estimates for vehicles to be manufactured and sold to 25-100 from 100-200 guided earlier. Consequently, it now projects revenues of $5-$15 million in 2022, compared with the previous forecast of $15-$25 million on account of supply chain chaos.

Meanwhile, Workhorse also highlighted the progress on its latest/upcoming vehicle offerings. It has commenced manufacture and deliveries of its W4 CC platform. The company remains on track to start the pilot production of W750 step vans soon. It is also executing its plan for the W56 platform, with production expected to begin in the third quarter of 2023. WKHS also intends to complete testing of its C1000 platform by 2022 end.

Tesla has made its foray into Thailand. The EV behemoth started taking orders for Model 3 and Y last week. While Models S and X won’t be available in the country, the starting price of Model 3 in Thailand is ???1,759,000 ($50,730). The RWD Model Y will be retailed at ???1,959,000 ($56,500).  The Long Range and Performance versions of 3 and Y are also available for order. The starting price of Long Range 3 and Y is ???1,999,000 ($57,654) and ???2,259,000 ($65,153), respectively. The Performance versions of Long Range 3 and Y come in at ???2,309,000 ($66,595) and ???2,509,000 ($72,363), respectively.

Meanwhile, Tesla hit a new record in November 2022 deliveries in China. The company sold 100,291 Giga Shanghai-produced vehicles last month. Per China Passenger Car Association,Tesla sold 69,098 Model Y and 31,193 Model 3 units. The EV giant also began the first deliveries of Model S and Model X Plaid vehicles in Germany. These models have long been confined to just the U.S. market. However, with Certifications of Conformity published earlier this year, these vehicles are now eligible for sale in Europe.

Price Performance

The following table shows the price movement of some of the major EV players over the last week and six-month period.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

What’s Next in the Space?

Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

General Motors Company (GM) : Free Stock Analysis Report

Tesla, Inc. (TSLA) : Free Stock Analysis Report

Workhorse Group, Inc. (WKHS) : Free Stock Analysis Report

Blink Charging Co. (BLNK) : Free Stock Analysis Report

Li Auto Inc. Sponsored ADR (LI) : Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research