Welcome to The Fly's latest edition of "Charged," where we look back at some recent analysts' notes, news and activity in the electric vehicle and clean energy space.
GM, CRUISE SUE FORD: General Motors (GM) and its Cruise robo-taxi subsidiary have filed a lawsuit to stop Ford Motor (F) from using the name "BlueCruise" to market its hands-free driving technology, Reuters' Joseph White reported, citing the companies. "While GM had hoped to resolve the trademark infringement matter with Ford amicably, we were left with no choice but to vigorously defend our brands and protect the equity our products and technology have earned over several years in the market," GM said in a statement.
CHEVY BOLT EV RECALL: General Motors announced a second recall of its 2017-2019 Chevrolet Bolt electric vehicles after at least two of the cars that were repaired for a previous problem erupted into flames. GM and LG, which supplies the vehicle's battery cells, have identified a second "rare manufacturing defect" in the Bolts that increases the risk of fire. The recall covers about 69,000 of the cars globally, including nearly 51,000 in the U.S. To fix the issue, GM will replace defective battery modules in the vehicles. The repair is different than the previous fix, which largely relied on software and, in some cases, replacement modules, GM noted. "We're working with our supplier and manufacturing teams to determine how to best expedite battery capacity for module replacement under the recall," GM spokesman Dan Flores said in an email to CNBC.
TESLA RESULTS: Tesla (TSLA) is expected to report second quarterly results on Monday. Over the weekend, Bloomberg's Atul Prakash reported that CEO Elon Musk said a Tesla factory to produce cars in India is "quite likely" if the electric automaker can first begin sales with imported vehicles. Musk has also said that the car maker will most likely restart accepting bitcoin as payment once the company performs due diligence on the amount of renewable energy used to mine the cryptocurrency.
RIVIAN TO BUILD SECOND U.S. PLANT: Rivian, the electric pickup maker that is backed by Amazon (AMZN) and Ford, is planning to build a second assembly plant in the U.S. that will also include battery cell production, Reuters' Paul Lienert, David Shepardson, and Ben Klayman reported, citing four people familiar with the matter. Multiple states have bid for "Project Tera," which will be announced in a couple of months and break ground early next year, the sources said. "While it's early in an evolving process, Rivian is exploring locations for a second U.S. manufacturing facility," Rivian spokeswoman Amy Mast said on Thursday.
OCEAN TO DEBUT IN NOVEMBER: In a press release, Fisker (FSR) announced details for the first wave of its global brand experience centers. Starting in the first half of 2022, the company will open its inaugural center in Los Angeles, followed by a European center in Munich. "Fisker Brand Experience Centers will offer prospective customers the opportunity to see and experience the company's vehicles, as well as speak with product experts on hand," the company stated. Fisker added that it plans to open at least four additional centers in London, New York, Miami and Copenhagen through the second half of 2022. Fisker also announced that the Fisker Ocean will make its global debut at the upcoming 2021 LA Auto Show in November, with production starting Nov. 17, 2022. Production prototype testing will begin this year. The Fisker Ocean will enter the U.S. market at a starting MSRP of $37,499 excluding EV-related subsidies and below EUR 32,000 in Germany including taxes and EV-related subsidies. Including fleet orders from companies such as Credit Agricole Consumer Finance, Onto and Viggo, Fisker has more than 62,000 hand-raisers and 17,300 paid reservations for the Ocean.
CHARGEPOINT TO BUY HASTOBE: ChargePoint (CHPT) announced it has signed a definitive agreement to acquire hastobe, an e-mobility provider with a leading European charging software platform. Under the terms of the agreement, ChargePoint will acquire hastobe for a total purchase price of approximately EUR 250M, subject to adjustments, to be paid in cash and stock. The transaction is expected to close in 2021, subject to the satisfaction of regulatory approvals and other customary closing conditions.
TAX CREDIT: The proposed 30% tax credit for electric bicycles in the U.S. is one step closer to becoming law, thanks to recent progress in the Senate, Electrek's Micah Toll reported. Late last week, a new bill was introduced to the Senate known as the Electric Bicycle Incentive Kickstart for the Environment (E-BIKE) Act, the author noted, adding that the bill, S.2420, is a companion bill to H.R.1019 that was introduced into the House of Representatives earlier this year. It proposes a 30% tax credit for new electric bicycle purchases in the US, up to a maximum credit of $1,500. E-bike company EZGO Technologies (EZGO) is among those who could potential benefit from this bill.
ON THE SIDELINES: JPMorgan analyst Jose Asumendi initiated coverage of QuantumScape (QS) with a Neutral rating and $35 price target. The company is developing solid-state battery prototypes for the automotive sector and is expected to play a "vital role" in the development of global solid-state battery technology as well as VW's internal battery strategy, Asumendi told investors in a research note. The analyst's Neutral rating reflects the risks associated with successfully developing a commercially viable solid-state battery cell against the upside of QuantumScape "potentially disrupting the electric battery market and accelerating mass adoption of electric vehicle."
LEADING THE WAY: Citi analyst P.J. Juvekar initiated coverage of Plug Power (PLUG) with a Buy rating and $35 price target. Plug Power is "leading the way" in the nascent hydrogen economy, which is "at the cusp of a breakout," Juvekar told investors. Plug has "positioned itself at the center of the hydrogen economy" with its unique vertical integration from making electrolyzers to hydrogen production, delivery and building fuel cell modules, the analyst added.
FURTHER UNCERTAINTY: Baird analyst Tristan Gerra downgraded Velodyne Lidar (VLDR) to Neutral from Outperform with a price target of $10, down from $18. The CEO stepping down "casts further uncertainly" in the company's outlook after design win losses earlier in the year and "high-profile board/founder fight," Gerra told investors in a research note. Further, volume opportunities for lidars in the automotive space have transitioned from robotaxis to highway safety features, which requires different lidar technologies and where Velodyne is not currently well positioned, the analyst added.
Plug Power
-0.11 (-0.41%)
Velodyne Lidar
+0.06 (+0.77%)
EZGO Technologies
+0.05 (+1.59%)
General Motors
+0.63 (+1.15%)
Ford
+0.135 (+0.98%)
Tesla
+22.6 (+3.51%)
Amazon.com
+51.42 (+1.41%)
Fisker
+0.21 (+1.32%)
ChargePoint
+0.46 (+2.04%)
QuantumScape
+0.095 (+0.42%)