EV Week In Review: Cathie Wood's Big Statement On Tesla, Chip Crunch Scare For Li Auto, & More

EV Week In Review: Cathie Wood's Big Statement On Tesla, Chip Crunch Scare For Li Auto, Workshorse's Travails Continue, Nio Updates On Norway

The EV space turned in a mixed performance in the week ended Sept. 24, with several market-moving news events driving action in stocks. Here are the week's key headlines related to EV stocks.

Cathie Wood's Tesla Strategy, California Battery Plant, and More

Cathie Wood, a Tesla bull and fund manager, said at the Morning Star Investment Conference that she would consider liquidating holdings in the EV maker if the stock hits the "$3,000" level. Wood's Ark Invest ETFs have substantial positions in Tesla (TSLA). In September, however, the funds liquidated some of their Tesla holdings.

Tesla, which has its flagship manufacturing plant in Fremont, broke ground on a new battery production facility in California. The plant, dubbed "Megafactory," will be used for producing a large-scale battery system "Megapack."

Rumors that emerged during the week suggest that Samsung (SSNLF) is in talks with Tesla to make next-gen self-driving chips, which would mean the latter will ditch its partnership with Taiwan Semiconductor Manufacturing Co. Ltd. (TSM).

Tesla CEO Elon Musk said in a tweet during the week that the company is hoping to offer real-time insurance based on actual driving history in Texas next month. Musk was ruing the extremely slow and complex regulatory process for approving insurance.

Li Auto Trims Guidance

Li Auto, Inc. (LI), which has been the top performer among the U.S.-listed Chinese EV trio in terms of deliveries, slashed its forecast for the third quarter. The company now expects deliveries of 24,500, down from the previous guidance of 25,000-26,000, with the shortfall blamed on COVID-19 disruptions at its dedicated Malaysian chip manufacturer that will affect supply of chips meant for its millimeter-wave radar.

The warning announced Monday triggered selling in other EV makers, too.

Workhorse Suspends Production

Workhorse Group Inc.'s (WKHS) cup of woes overflows, as the EV manufacturer said it is suspending deliveries of its flagship C-1000 delivery EVs. The company also said it is recalling the 41 vehicles it already delivered.

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