Lordstown Motors (RIDE) – Get Report recovered from earlier losses to end almost unchanged Wednesday after the maker of electric trucks said in a regulatory filing that it didn’t have enough cash on hand to build vehicles at scale and sell them, and that “these conditions raise substantial doubt regarding our ability to continue as a going concern.”
The shares slumped more than 16% on Tuesday.
“The Company’s ability to continue as a going concern is dependent on its ability to complete the development of its electric vehicles, obtain regulatory approval, begin commercial-scale production and launch the sale of such vehicles,” Lordstown said in filings with the Securities and Exchange Commission. “The Company believes that its current level of cash and cash equivalents are not sufficient to fund commercial-scale production and the launch of the sale of such vehicles.”
When the company reported a wider-than-expected first-quarter loss in May it also said 2021 production of its Endurance truck would be half prior expectations.
TheStreet’s Jim Cramer said: “I had the Lordstown CEO on Mad Money and he was talking about how he had orders in the pipeline, but it turns out that he had letters of interest for orders, which shouldn’t be confused with actual orders. I’m sorry — just don’t talk about it then.”
“There were some very ill-advised comments that he made to get people in the stock. He should have just said ‘we haven’t sold a car, but I think our car is going to be great,’ like what Fisker did,” Cramer added.
Over on Real Money, Timothy Collins looks at Lordstown, Nikola (NKLA) – Get Report and even World Wrestling Entertainment (WWE) – Get Report and writes, “Don’t take it personally when someone is bearish on a meme name you’re trading. Fundamentally and logically, they are probably correct in the long-term but not making any money in the short-term.” Read and profit from his insights on how to manage risk on Real Money.
Vigna’s “deep understanding of the technologies driving much of the change in our industry, and his proven innovation, business-building and leadership skills, will further strengthen Ferrari,” Ferrari Chairman John Elkann said.
Tesla CEO Elon Musk announced, on Twitter, that Tesla has pulled the plug on the Model S Plaid+. Musk said the Plaid+, which was marketed with a driving range of 520 miles, is now unnecessary given that the Model S Plaid is “just so good”. It will be unveiled at a media event on June 10.
Musk, one of the 25 richest Americans, managed to pay zero income tax in at least one year of the past 15, ProPublica reported, citing detailed data it analyzed from unnamed sources.
Real Money expert Chris Versace says that he does not own Tesla stock and doesn’t plan to buy it. Versace explained that he’s a buyer of the bullets instead of the guns, so he’s more so looking at the key suppliers of all of the EV companies in the market.
“Long-term, I’ve had concerns about when Ford (F) – Get Report, General Motors (GM,) – Get Report and others really pushed into the EV market and we’re starting to see that happen now in 2021. And, I think it’s only going to accelerate. But we also know that we are going to continue to see chip constraints really plague the auto manufacturers, which don’t see the issue resolved until 2022 or maybe 2023,” Versace said.
“And, over the weekend, there was a report that Tesla’s business in China was roughly half in May, which comes on the back of companies like NIO (NIO) – Get Report and Xpeng (XPEV) – Get Report continue to report year-over-year shipping growth in May. So, there’s a lot of challenges that I think are hitting Tesla now in the competitive EV landscape where they had an early advantage in the past,” he added.
Cramer also likes Ford and is considering buying the new 2022 Ford Maverick for his daughter. “Ford’s got some real products and I think that Jim Farley has said ‘Elon Musk, I’m gonna crush you,” he said.
Here is a list of the electric vehicle stocks to watch:
Tesla (TSLA) – Get Report shares ended Tuesday down 0.80% at $598.78 after the clean energy carmaker saw a surge in China sales that eased concerns of near-term weakness in the world’s biggest automotive market.
Tesla sold 33,463 Shanghai-made cars in the country last month, data from the China Passenger Car Association (CPCA) indicated Tuesday, up 29% from the April tally and more than three times ahead of last year’s pandemic-hit total of just over 11,000.
Jerome Guillen, president of Tesla’s heavy trucking division and the executive in charge of the company’s Semi electric trucks, has left the company after nearly 11 years. Musk often has credited Guillen for his significant contributions to the Tesla Semi, which is expected to launch this year.
TheStreet Quant Ratings rates Tesla as a Hold with a rating score of C.
Ford said the Maverick comes with a standard 1,500-pound (6,800-kilo) payload capacity and 2,000-pound base towing capacity. And, the hybrid vehicle will get 40 miles per gallon in the city. A gasoline-powered engine will be sold as an option.
The Maverick follows last month’s debut of Ford’s F-150 Lightning, which is at the forefront of the company’s $30 billion global electric vehicle plan.
Last week, Ford said that May’s electrified vehicle sales nearly tripled and total sales climbed 4.1%. The automaker’s shares surged recently after JPMorgan analyst Ryan Brinkman lifted his price target on Ford by $2, to $18 a share while maintaining his overweight rating.
TheStreet Quant Ratings rates Ford as a Hold with a rating score of C.
General Motors (GM) – Get Report jumped this past week after the carmaker said it expected first-half earnings to be “significantly better” than previous forecasts as semiconductor shipments improve and plants around the country return to full capacity.
The company gained 0.43% on the strength of a $5 price target boost, to $70 per share, from Daiwa Capital Markets.
GM said it was accelerating the production of large and medium-sized pickups in the U.S.
TheStreet Quant Ratings rates GM as a Buy with a rating score of B.
Electric truck maker Nikola (NKLA) – Get Report posted better-than-expected first-quarter results. The company said that during the first quarter, it commissioned the first batch of five Nikola Tre battery-electric vehicles.
Last month, Nikola unveiled plans with Iveco and OGE to transport hydrogen from production sources to fueling stations that support fuel-cell elective vehicles. And this past week, the company said Total Transportation Services, one of Southern California’s most prominent port trucking companies, signed a letter of intent to order 100 Class 8 battery and fuel-cell electric semi-trucks.
NIO (NIO) – Get Report revealed that “Gemini” is the code name for a new high-end electric vehicle lineup to be launched next year, burying speculation that the China-based EV maker was looking to release a less-expensive mass-entry-level electric car.
NIO supplier JAC Group last month invited bids for construction of a NIO production line codenamed “Gemini” that would produce 60,000 units a year, sparking speculation that it would be a new entry-level NIO model.
A company spokesperson confirmed Monday that the “Gemini” project will involve building NIO-branded luxury cars that will compete with the likes of Tesla, Audi, BMW (BMW) and others — not lower-priced models.
NIO shares jumped this past week after the Chinese electric vehicle maker reported a more than 95% year-over-year increase in deliveries for May. The company delivered 6,711 vehicles in the month and 109,514 vehicles year to date.
TheStreet Quant Ratings rates NIO as a Sell with a rating score of E+.
In a private audience with Pope Francis, Fisker founder and CEO Henrik Fisker and Geeta Gupta-Fisker presented their vision for the design of an all-electric papal transport.
The company plans to deliver this singular version of the Fisker Ocean to the Pope next year. The Fisker Ocean is projected to start production on Nov. 17, 2022. There are currently more than 16,000 reservation holders for the Ocean. TheStreet Quant Ratings doesn’t have a rating for Fisker.
Xpeng shares have been rising after the Chinese electric vehicle maker reported stronger-than-expected first-quarter results, including a sevenfold surge in revenue. Xpeng shares recently traded at $26.10, up 5.4%. They have dropped 47% over the past three months amid investor concern about the stock’s valuation.
Xpeng debuted the Xpeng P5 smart sedan last month, which the Chinese electrical vehicle maker said is the world’s first mass-produced smart EV equipped with automotive-grade LiDAR technology. LiDAR, or light detection and ranging, is a system that helps provide visibility for autonomous vehicles.
Fuel-cell maker Plug Power (PLUG) – Get Report said it completed the restatement of its financial statements for the past three years. The company said the restatements had no effect on its cash position, business operations or economics of its commercial arrangements.
“For those who like hydrogen, the stock to like is Plug Power,” TheStreet founder Jim Cramer said in an interview. “The company has been getting breakout orders, which I like. But at the same time hydrogen is at 60 bucks; it needs to be competitive with oil.”
TheStreet Quant Ratings rates Plug Power as a Sell with a rating score of D.
The San Jose, Calif., company reported a net loss of 20 cents a share, compared with a 6-cent loss in the year-earlier quarter. Analysts polled by FactSet expected a loss of 7 cents a share for the latest period.
“That’s dead money. I’m sorry,” Cramer said of Canoo this past week during the “Mad Money Lightning Round.”