Investing.com – Here’s your weekly pro recap of last week’s biggest headlines in the electric vehicle sector: GM ties up with Tesla; Charging startups that need a boost; All eyes are on Stellantis.
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Tesla’s dominance in China
Tesla (NASDAQ:TSLA) has made significant progress in China’s booming electric vehicle market last month.
Due to substantial discounting, Tesla’s market share increased significantly in August, almost doubling its share to 13.2% from 7.5% in July. The company recorded sales of 64,694 vehicles in China during the month, an impressive feat in the highly competitive market.
A standout success was the China-made Model Y, which recorded 65,316 deliveries according to the China Passenger Car Association (CPCA).
It seems that Tesla’s aggressive pricing strategy, which included several price cuts throughout the year, has paid off, making its EVs more accessible to Chinese consumers.
However, it’s worth noting that Tesla introduced a redesigned Model 3 with a starting price 12% higher than the previous base model with rear-wheel drive, a strategic move between affordability and a premium offering. Displays balance.
TSLA shares reached a weekly high of $257.90 on Tuesday and ended the week down 3.6% at $248.50.
Stellantis Battery Detail
Elsewhere in the world, multinational automaker Stellantis (NYSE:STLA) is preparing for a significant leap in its battery production capacity. Mickey Bailey, head of global propulsion systems at Stellantis, announced that the company plans to expand its battery production capacity to 400 GWh to meet the growing demand for EVs.
Stellantis has already committed to delivering six Gigafactories around the world, including a recently inaugurated European Gigafactory in France. Additional facilities are on the horizon in Germany and Italy, all part of the ACC joint venture with Mercedes (ETR:MBGN) (OTC:MBGY) and TotalEnergies (EPA:TTEF) (NYSE:TTE).
Additionally, plans are in motion for three more facilities in the United States and Canada, marking a substantial expansion of Stellantis’ global footprint in the EV sector.
To expand capacity even further, Stellantis is investing 40 million euros ($43 million) in its Battery Technology Center located in the Mirafiori complex in Turin. This center will play a key role in conducting in-house testing and development for EV battery packs, ensuring Stellantis remains at the forefront of EV technology.
STLA shares reached a weekly high of $18.34 on Tuesday, with an overall decline of about 0.9% for the week to $18.23.
Mullen Automotive’s fight for survival
While Tesla and Stellantis are making waves in the EV market, Mullen Automotive (NASDAQ:MULN) faces a different kind of challenge.
Mullen’s share price saw a brief bounce in early trading on Friday after the company announced an appeal of Nasdaq’s decision to delist the company after it fell below the $1 mark. The appeal could potentially provide Mullen a lifeline of up to 180 days to improve its stock price and meet Nasdaq’s listing requirements.
Mullen’s journey to compliance has been a tumultuous one, including a 10x stock dilution to raise funds to ramp up production, as well as two reverse stock splits in a year to boost the share price. The first was a 1-for-25 reverse split in May, and a 1-for-9 reverse split last month.
Given the historical price changes over the past five years, it remains challenging to predict a significant improvement in Mullen’s share price. However, if Nasdaq’s committee grants another extension, an artificial increase in the share price can be expected.
CEO David Michener’s strategic decisions will be key in addressing these issues. Another reverse split could provide a temporary boost, but the long-term sustainability of Mullen’s stock performance depends on its ability to deliver on its EV production promises.
MULN shares hit a weekly high of $0.5377 on Tuesday afternoon, and fell 22% from there to close Friday trading at $0.4193/sh. The stock’s weekly losses totaled 18.9%.
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Source: finance.yahoo.com
