What You Missed This Week in EVs and Clean Energy

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.

EV CHARGING INFRASTRUCTURE GROWTH: Sales of electric vehicles in the U.S. took only three years to top the 2M threshold, “and less than a year to go from 3mn to 4mn at June-end, reports the Financial Times. “If the rollout of EV charging ports fails to keep pace with the expected growth in sales of the vehicles, the gap in charging stations may hamper the “adoption in the US and their role in reducing emissions,” noted the FT. Companies in the EV space that may be impacted by this include Tesla, Li Auto, ON Semiconductor (ON), Nvidia (NVDA), Lucid Group (LCID) Rivian Automotive, ChargePoint (CHPT), EVgo (EVGO), Blink Charging (BLNK), and Wallbox (WBX).

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

MARKET DEBUT: Shares of VinFast Auto (VFS) were down 11% afterhours on Tuesday, though the stock jumped 68.5% in regular trading in Nasdaq debut. The company stated earlier that, “VinFast’s public listing follows the completion of the business combination with Black Spade Acquisition Co on August 14, 2023. The combined company will now operate as VinFast Auto Ltd. and continue to be led by Global CEO Le Thi Thu Thuy, or Madame Thuy Le, who is supported by an experienced, diverse, and entrepreneurial senior management team. Black Spade will provide ongoing business advisory input for the growth of the brand and assist with direct investor engagement. VinFast has delivered close to 19,000 EVs including the VF e34, VF 5, VF 8, and VF 9 models, as of June 30, 2023. It is also preparing for the upcoming launch of the VF 3, VF 6, and VF 7 models in the Vietnamese and global markets. VinFast looks forward to building upon its rapid expansion as the company rolls out next-generation EVs and solutions, and carries out its strategy of expanding its footprint globally. The company has established a strong foothold in its Vietnamese home market by rolling out its own charging network spanning across 63 cities and provinces, and plans to expand it further in the coming years. VinFast has also established a company-owned retail and service network of over 122 VinFast stores worldwide. Additionally, VinFast is working to strengthen its position in the global EV market by leveraging new partnerships with distributors and dealers in select markets, including North America, Europe, Vietnam, and Southeast Asia. On July 28, 2023, VinFast broke ground at its new EV manufacturing facility in the U.S. The event marked a significant step toward its global expansion and supply chain development in North America.”

NEW MODELS: On Tuesday, BofA raised the firm’s price target on Li Auto (LI) to $60 from $56, while keeping a Buy rating on the shares. The company’s fourth new EREV model – L6 – should start to contribute to sales in Q2-Q3 of 2024, the analyst tells investors in a research note. Li Auto is also expected to launch its first BEV model in Q4 of this year and deliver it in Q1 of 2024, the firm states, raising its 2023, 2024, and 2025 expected sales volumes by 1%, 5%, and 23% respectively.

DEMAND SOFTNESS: TD Cowen lowered the firm’s price target on ChargePoint to $14 from $20, but kept an Outperform rating on the shares. The firm said it remains a top pick as they previewed upcoming results where they expect continued gross margin improvement; though all eyes remain glued to top-line momentum given concerns around demand softness owing to a tepid macro.

MARKET UNCERTAINTY: KeyBanc lowered the firm’s price target on Enphase Energy(ENPH) to $200 from $267, keeping an Overweight rating on the shares following in-line Q2 results and Q3 guidance below consensus. The target change reflects a reduction in the firm’s 2023-2025 estimates due to the ongoing de-stocking in the distribution channels against slowly recovering demand, and is due to market uncertainty, which KeyBanc expects to persist at least through the end of 2023.

TARGET CUT: KeyBanc lowered the firm’s price target on Sunnova Energy (NOVA) to $31 from $39 to reflect lower projected NPV/share, while keeping an Overweight rating on the shares. The firm notes Sunnova reported Q2 results that came in below its and consensus expectations. That said, the company reiterated its full year guidance across all metrics and raised its customer growth targets for 2023, which is now reflected in KeyBanc’s model.

WEAK Q2 RESULTS: TD Cowen downgraded Wallbox to Market Perform from Outperform with an unchanged price target of $4. The firm cites the “weak” Q2 report and general macro concerns for the downgrade. While policy and new products can position Wallbox into commercial settings, the company largely remains a play on consumer electric vehicle adoption with its revenue dominated by a weakening Europe, TD Cowen tells investors in a research note. The firm says margin deterioration is also a concern, particularly against increased competition.