Nikola also reported quarterly results, Cantor Fitzgerald upgraded Lucid on capital raise Institutional investors and professional traders rely on The Fly to keep up-to-the-second on breaking news in the electric vehicle and clean energy space, as well as which stocks in these sectors that the best analysts on Wall Street are saying to buy and sell.
From the hotly-debated high-flier Tesla (TSLA), Wall Street's newest darling Rivian (RIVN), traditional-stalwarts turned EV-upstarts GM (GM) and Ford (F) to the numerous SPAC-deal makers that have come public in this red-hot space, The Fly has you covered with "Charged," a weekly recap of the top stories and expert calls in the sector.
CYBERTRUCK ORDERS: Tesla stopped taking orders for the cheapest model of its Cybertruck electric pickup, which was priced at $61,000, Fox Business' Eric Revell reports. Now, its $100,000 version is the cheapest model available to order on the automaker's website.
TARGET CUT: RBC Capital lowered the firm's price target on Tesla to $224 from $227 but kept an Outperform rating on the shares. Tesla could be an interesting name to own as it benefits from increasing regulatory credits and energy storage growth, the firm tells investors in a research note. Additionally, the company could at any moment cut its FSD pricing, which would be a critical catalyst for shares, RBC added.
Click here to check out Tesla's recent Media Buzz Sentiment as measured by TipRanks.
RIVIAN RESULTS: Rivian Automotive reported Q2 losses per share of ($1.46), with consensus at ($1.21), and Q2 revenue of $1.158B, with consensus at $1.13B. RJ Scaringe, Rivian Founder and CEO said, "The second quarter has been a defining one for Rivian. We have demonstrated strong execution during the quarter with the plant retooling upgrade and launch of second generation R1 vehicles. The changes we made to the R1 platform have allowed us to reduce material and manufacturing costs, while simultaneously improving performance and capabilities. As a testament to our industry-leading technology stack, we also recently announced our proposed JV with Volkswagen Group. The technical workstreams to prepare the integration of Rivian electrical architecture and software technology stack into Volkswagen Group products are moving along very well, and we expect to close the joint venture in the fourth quarter of this year. The output from our joint venture will see Rivian's technology in vehicles all around the world, helping to create more consumer choice and speed up the transition away from fossil fuels."
Wells Fargo lowered the firm's price target on Rivian Automotive to $15 from $18 and kept an Equal Weight rating on the shares following quarterly results. The firm notes Rivian's Q2 adjusted EBITDA was in-line with consensus and management maintained FY24 guide. That said, pricing concerns increase the risk Rivian misses its Q4 gross margin breakeven target, Wells adds.
NIKOLA RESULTS: Nikola (NKLA) reported Q2 losses per share of ($2.86), with consensus at ($2.82) , and Q2 revenue of $31.319M, with consensus at $26.2M. "In the last three quarters of serial production, we have demonstrated that Nikola is the offtake. We are the catalyst to disrupt Class 8 trucking to make zero-emission a reality," said Steve Girsky, President and CEO of Nikola. "We are the only OEM with Class 8 FCEVs commercially available in North America today. Our trucks are put to the test every day by end fleet users, hauling freight and delivering to their customers. Q2 is an example of how we're approaching the intersection of mission and reality and how Nikola is out front, charting the course."
Following the earnings report, DA Davidson lowered the firm's price target on Nikola to $10 from $12 and kept a Neutral rating on the shares. The firm notes the company stepped up FCEV deliveries again in Q2, with 72 in total, and maintained its full-year outlook, but its cash also continues to burn with $90M spent in Q2 and $256M left. DA Davidson adds that it continues to worry about "simple issues" like the impact of the 2027 EPA emissions standards.
CAPITAL RAISE: Cantor Fitzgerald upgraded Lucid Group (LCID) to Neutral from Underweight with an unchanged price target of $4. The company's new $1.5B capital raise with Saudi Arabia's Public Investment Fund extends its cash runway into Q4 of 2025, the firm tells investors in a research note. Cantor sees the capital raise as significant since it extends Lucid cash runway and helps to solidify Public Investment Fund's longer-term commitment to the company. As a result, it upgraded the shares to Neutral.
ELEVATED RISKS: DA Davidson downgraded Lion Electric (LEV) to Neutral from Buy with a price target of $1, down from $1.50, following the Q2 report. Lion is facing bureaucratic delays in its bus business and slower than expected adoption in trucks, the firm tells investors in a research note. DA Davidson says this has led to an even greater focus on liquidity preservation. It believes the "risks have become too great to continue to recommend" the shares.
RIGHT SETUP: Exane BNP Paribas upgraded Enphase Energy (ENPH) to Outperform from Neutral with a price target of $144, up from $120. While the company may report some "lackluster" quarters in the near-term, overall trends point to a "robust" 2025 and a greater inflection than the Street forecasts on 2026 given faster rate cuts, rising customer bills, a negative correlation to recession and DC benefits, the firm tells investors. Utility rates going up and interest rates coming down provides "the right long-term setup," Exane added.
CHAPTER 11: SunPower (SPWR) announced it has entered into an asset purchase agreement with Complete Solaria (CSLR) to serve as the Stalking Horse Buyer for the assets associated with SunPower's Blue Raven Solar business, New Homes business, and non-installing dealer network. Concurrently, the company and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware, which will provide other interested parties the opportunity to submit competing bids for the company's assets. Under the terms of the APA, subject to court approval, Complete Solaria will acquire the assets and assume certain related liabilities for $45M in cash. The company has asked the court for approval to complete the transaction mid to late September.
Additionally, SunPower intends to continue a sale process for its remaining assets and effectuate any resulting sale transactions pursuant to Section 363 of the U.S. Bankruptcy Code. SunPower has requested court approval to access the necessary prepetition cash collateral to fund business operations and administrative expenses during the Chapter 11 cases. To support its operations during the court-supervised process, the company is filing a variety of customary motions seeking, among other things, authorization to meet its obligations to its employees. The company expects to receive court approval for these requests. Following an expeditious sale process, the company plans to liquidate any remaining assets and undergo an orderly and efficient winddown of its operations.
