Tesla bull throws in towel, Nio reports strong sales, Rivian raises outlook

Here are three big stories driving EV (electric vehicle) stocks today:

A Tesla bull throws in the towel

After yet another stock sell-off this week by Tesla ( TSLA ) CEO Elon Musk (and a consequent stock drop yesterday) and the latest headlines circulating about Musk’s acquisition of Twitter, Wedbush analyst Dan Ives has seen enough.

Ives, one of Tesla’s biggest Wall Street bulls, took Tesla off the company’s “Best Ideas” list and lowered its price target to $250 from $300.

“In a dark comedy show with Twitter, Musk has effectively tarnished Tesla’s history/stock and is beginning to potentially affect the Tesla brand with this ongoing Twitter train wreck,” Ives wrote in a note today.

“From selling Tesla stock over and over again, to the PR nightmare that Twitter has become, laying off 50% of the workforce and then needing to bring some back, Musk’s attention is shifting from Tesla to Twitter and ultimately the fear that this barrage of controversy on Twitter on a daily (almost hourly) basis is starting to negatively change the Tesla brand worldwide,” he said.

While Ives says Tesla’s long-term growth story is intact, in the short term Ives believes Tesla investors are “the ones who have been hit over and over again by Musk’s Twitter antics” and that Musk needs to focus more on ” ‘golden child’, Tesla, as the EV competition heats up against a soft global macroeconomic environment.

Nio shows strong revenue growth

And speaking of Tesla competition, shares of Chinese electric vehicle maker Nio ( NIO ) are climbing higher today after a strong third-quarter sales showing.

For the quarter, Nio reported:

That revenue figure represents a gain of nearly 33% over a year ago, which appears to have dispelled any concerns about the reported larger-than-expected loss.

Nio says the loss and narrower margins are due to reduced regulatory credit sales, rising costs of items such as batteries and investment in its charging and service network.

Still, the automaker delivered 31,607 cars in the third quarter, up nearly 30 percent from a year ago and an all-time record. Nio’s new EV sedan, the ET5, has seen strong interest, CEO William Bin Li said, and will “support a significant acceleration of our overall revenue growth in the fourth quarter of 2022.”

Looking ahead Nio’s fourth quarter revenue is expected to be in the range of $2.44 – $2.70 billion, which would be at least a 75% – 94% year-over-year increase, and also sees Q4 deliveries in the region of 43,000 and 48,000 units, representing growth of 71.8% to 91.7% from last year’s fourth quarter.

A blogger live streams on two cellphones next to one of the EVE concept cars from Chinese automaker NIO during an event to launch the ES8 electric SUV in Beijing, China, Saturday, Dec. 16, 2017. (AP Photo/Ng Han Guan)

Rivian shares soar despite mixed earnings report

Shares of Rivian ( RIVN ) are up here, along with the broader market, after a mixed earnings report.

For the quarter, Rivian reported:

However, the company said it will still hit its annual production forecast of 25,000, meaning it will need to produce about 10,600 vehicles in the fourth quarter to meet that target. Rivian also revealed that it had 114,000 pre-orders for its R1 vehicles.

Although the company burned through cash in the quarter and still sees an adjusted EBITDA loss of $5.4 billion for the year, CEO RJ Scaringe was confident the company was in a good financial position.

“We have a strong balance sheet with $14 billion in cash that gives us the flexibility to navigate these uncertain economic times and seek capital-efficient methods to drive growth,” Scaringe said.

Looking ahead to future vehicles, Rivian has pushed the launch of its R2 vehicles to 2026, with the opening of its new factory in Georgia happening in 2025.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him Twitter and up Instagram.

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