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.
PRODUCTION IN GERMANY: Tesla (TSLA) will launch its overdue German production operations in December, estimating as many as 30,000 vehicles will be manufactured there in the first half of 2022, Bloomberg's Karin Matussek reported, citing Automobilwoche. Production was to have begun in July but was delayed because the company hadn't received environmental clearance. Local regulators are expected to grant the necessary permits within days, the magazine said.
DELIVERY DELAY: Rivian (RIVN) is delaying deliveries of the R1T all-electric pickup and R1S all-electric pickup SUV until 2022, Teslarati's Joey Klender reported last week. Rivian sent an email to a member of the Rivian Owners Forum, saying "We can't wait to get you behind the wheel of your R1S. Now that vehicle production is ramping up at our factory in Normal, IL, and we're building out our service and support in your region, we're able to share an updated delivery window. Your Launch Edition R1S delivery window is now June - July 2022." Rivian, which began deliveries of the R1T in Q4, is likely battling with the early challenges of scaling automotive production, Klender said
ON THE SIDELINES: Capital One analyst Richard Tullis initiated coverage of EVgo (EVGO) with an Equalweight rating and $18 price target. The company owns and operates the largest public EV fast charging network in the U.S. and serves more than 300,000 customers, Tullis noted. Due to lower EV penetration in the U.S., EVgo stall utilization has lagged that of European CPOs and capital expenditures will remain high and free cash flow will be negative until 2025 as the company accelerates its station build out, the analyst added.
The analyst also started ChargePoint (CHPT) with an Equalweight rating and $24 price target. ChargePoint is a leading hardware and software provider of EV charging stations with over 100,000 ports shipped since 2017 and 47,000 public ports subscribed to its network, Tullis noted. While revenue has grown at a 25% compound annual growth rate since 2018, the company's high operating expenses have weighed on margins, resulting in an operating loss that will improve but persist until 2024, the analyst contended.
IMPORTED SOLAR EQUIPMENT TARIFFS: The U.S. International Trade Commission, or USITC, announced on November 24 that it has determined that import relief provided beginning in 2018 to the U.S. industry producing crystalline silicon photovoltaic cells, whether or not partially or fully assembled into other products, continues to be necessary to prevent or remedy serious injury to the U.S. industry, and that there is evidence that the domestic industry is making a positive adjustment to import competition. The Commission will forward its report on its investigation and determination to the President by December 8 and the President will make the final decision on whether to extend the import relief, the USITC stated. The Commission's public report, "Crystalline Silicon Photovoltaic Cells, Whether or Not Partially or Fully Assembled into Other Products," will include the Commission's findings and will be available by December 29, the USITC noted.
LONG-TERM TAILWINDS: Wells Fargo analyst Michael Blum initiated coverage of Enphase Energy (ENPH) with an Overweight rating and $313 price target. Enphase "stands to benefit from a number of long-term tailwinds" in the solar market, including the continued expansion of the residential and commercial solar market, higher battery attach rates over time, and the decentralization of energy production, Blum told investors in a research note.
The analyst also started
Tesla
+58.02 (+5.36%)
Rivian Automotive
+7.94 (+7.08%)
EVgo
-0.59 (-4.32%)
ChargePoint
+0.265 (+1.03%)
Enphase Energy
+8.35 (+3.37%)
SolarEdge
+5.91 (+1.73%)
Canadian Solar
+0.935 (+2.45%)
First Solar
+1.55 (+1.47%)