tiprankstipranks
What You Missed This Week in EVs and Clean Energy
The Fly

What You Missed This Week in EVs and Clean Energy

Ford reaches supercharger agreement with Tesla, Musk visits China

Institutional investors and professional traders rely on The Fly to keep up-to-the-second on breaking news in the electric vehicle and clean energy space, as well as which stocks in these sectors that the best analysts on Wall Street are saying to buy and sell.

From the hotly-debated high-flier Tesla (TSLA), Wall Street’s newest darling Rivian (RIVN), traditional-stalwarts turned EV-upstarts GM (GM) and Ford (F) to the numerous SPAC-deal makers that have come public in this red-hot space, The Fly has you covered with "Charged," a weekly recap of the top stories and expert calls in the sector.

FORD, TESLA AGREEMENT:
Ford said it reached an agreement with Tesla that will provide Ford electric vehicle customers access to more than 12,000 Tesla Superchargers across the U.S. and Canada, doubling the number of fast-chargers available to Ford EV customers starting Spring 2024. Starting early next year, Ford EV customers will have access to more than 12,000 Tesla Superchargers across the U.S. and Canada, in addition to the over 10,000 DC fast-chargers that are already part of the BlueOval Charge Network. This will give Ford EV customers unprecedented access to fast-charging. Mustang Mach-E, F-150 Lightning and E-Transit customers will be able to access the Superchargers via an adapter and software integration along with activation and payment via FordPass or Ford Pro Intelligence. In 2025, Ford will offer next-generation electric vehicles with the North American Charging Standard connector built-in, eliminating the need for an adapter to access Tesla Superchargers.

Commenting on the news, Roth MKM says the agreement between Ford and Tesla is a positive for the entire EV charging space given distrust of Tesla’s competitive intentions and the need for other EV producers to improve the customer charging experience. The rate of investment in EV charging infrastructure is set to accelerate, the analyst tells investors in a research note, adding that the firm still seeks to understand how Tesla’s announcement improves the company’s position to access Infrastructure Bill funds. Roth adds, however, that Tesla valuation appears to rest on the specious assumption that the hundreds of EVs slated for launch by FY25 "will all be flops," keeping a Neutral rating on the stock with a price target of $85.

Click here to check out Tesla’s recent Media Buzz Sentiment as measured by TipRanks.

MUSK VISITS CHINA: A private jet used by Tesla CEO Elon Musk has arrived in Beijing, Reuters reports, citing a Reuters witness. In what would be his first trip to China in three years, Musk is expected to meet with Chinese officials and visit Tesla’s Shanghai plant. It is not clear who Musk would be meeting with or what issues they would discuss.

Wedbush analyst Daniel Ives says that as Elon Musk has not been in China in roughly 3 years it is a big deal that he is now visiting the country this week at a key time for Tesla. The firm would expect Musk to spend most of his visit around the key Shanghai Gigafactory plant, which remains the hearts and lungs of the Tesla production globally. With Giga Shanghai now producing over 80k units per month the production scale and scope of Tesla in China remains "one of its key advantages as Musk & Co. face increasing domestic competition" from the likes of Nio (NIO), Xpeng (XPEV), and others with an EV price war underway within the country, Wedbush adds. Tesla also plans to build a new battery factory in Shanghai which will be capable of producing 10k new Megapacks each year and further expanding its battery capacity globally along with its U.S. production artery. The firm has an Outperform rating on Tesla’s shares with a price target of $215.

SELL XPENG:  Barclays downgraded XPeng to Underweight from Equal Weight with a price target of $6, down from $8. The company reported "disappointing" Q1 results and provided a weaker than expected Q2 outlook, the firm tells investors in a research note. Barclays sees "multiple challenges" and a "highly uncertain outlook" for XPeng.

DELISTING NOTICE: Shares of Nikola (NKLA) were under pressure on Thursday after the company disclosed notice of delisting or failure to satisfy a continued listing rule or standard. The company said in a filing that, On May 24, it received written notice from Nasdaq notifying Nikola that "it is not in compliance with the minimum bid price requirements set forth in Nasdaq Listing Rule 5450(a)(1) for continued listing on Nasdaq. Nasdaq Listing Rule 5450(a)(1) requires listed securities maintain a minimum closing bid price of $1.00 per share, and Listing Rule 5810(c)(3)(A) provides that a failure to meet the minimum closing bid price requirement exists if the deficiency continues for a period of 30 consecutive business days. Based on the closing bid price of the company’s common stock for the 30 consecutive business days prior to the date of the Notification Letter, the company does not currently meet the minimum closing bid price requirement." The Notification Letter states that the company has 180 calendar days, or until November 20, 2023, to regain compliance.

BUY CHARGEPOINT: BofA upgraded ChargePoint (CHPT) to Buy from Neutral with a price target of $14, down from $15.50. ChargePoint is the leading provider of networked electric vehicle chargers in the U.S. with 70% market share and its shares are trading at all-time lows, BofA tells investors in a research note. The firm believes the company has "proof of execution" and a "line of sight" to profitability and a cash inflection in 2024. With the investor story largely unchanged since the PIPE offering, ChargePoint’s valuation is "compelling against shares making all-time lows," writes BofA.

Keywords: charged, clean energy, ev, electric vehicles, solar, battery

Published first on TheFly

See the top stocks recommended by analysts >>

Read More on CHPT:

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles