Transportation Stocks Making Moves

Transportation stocks are often on the move, but today, they were especially frisky. So, let’s recap some of the biggest movers from the day. 👇

First up is electric vehicle (EV) maker Rivian Automotive, which fell 23% to 3-month lows. Although the company expects third-quarter revenue to align with Wall Street expectations of $1.29 to $1.33 billion, it surprised investors with a plan to offer $1.5 billion in convertible notes. 

The company issued $1.3 billion of convertible notes in March as part of its efforts to slow spending and bolster its balance sheet. But clearly, it still feels the need to raise more cash to compete in the increasingly competitive EV space. 💸

Hyundai and Kia are the latest automakers to adopt Tesla’s EV charging standard beginning in 2024. It joins Ford, General Motors, Nissan, and others who have adopted Tesla’s North American Charging Standard (NACS) as Musk’s alternative inches closer to becoming the official industry standard. 🔌

After days of a stalemate, negotiators for the United Auto Workers (UAW) and Ford have narrowed their differences on pay increases as “really active” talks continue. As the strike continues, its downstream effects are being felt as GM furloughs more workers due to a lack of parts. 📝

Vietnamese electric vehicle maker VinFast Auto caught a slight bid today after reporting a 159% YoY jump in quarterly revenue. However, about 60% of its third-quarter sales went to a single Vietnam fleet operator, and its net loss widened to $623 million as it continued to invest in expansion. And relatedly, China’s Nio was in the news for reportedly losing $35,000 per car it sells. 😮

Meanwhile, French train manufacturer Alstom fell 38% to fresh all-time lows after slashing its cash flow guidance. Its worst trading day in history erased several billion dollars in value from its market capitalization, as its first-half cash flow plunged from negative 45 million euros to negative 1.15 billion euros. It now expects full-year free cash flow in the range of negative 500 to 750 million euros, down from a “significantly positive” forecast earlier in the year. 🚄

DWAC Bounces Back (Again)

We mentioned last week that investors were preparing for a politically driven 2024, and boy, that accelerated quickly. 😜

Trump-linked stocks Digital World Acquisition Corp, Phunware, and Rumble jumped sharply today after Ron DeSantis canceled his presidential run.

Read It

Plug Power Is Charged Up

Plug Power hasn’t given investors much to be excited about over the last few years, but today’s news has people (and its stock price) charged up again. So let’s see what happened. 👇

The alternative-energy company, which provides hydrogen fuel cell technology, finalized a deal with the Department of Energy (DOE) for a $1.6 billion loan facility. This critical funding comes at a time when the company has faced immense liquidity issues, issuing a going-corn warning last quarter and disclosing a secondary share offering of up to $1 billion. 💸

Read It

Nio & Nikola’s Never-Ending Story

No matter the day, there seems to be an endless stream of electric vehicle (EV) industry news. Let’s get into today’s headlines. 📰

First up is China’s Nio, which just received an additional $2.2 billion investment from Abu Dhabi’s CYVN Holdings, which raised its stake to 20.1%. The fund had last invested in Nio during July, with a $1 billion investment. 

Read It

Only Some EV-Makers Delivered

Electric vehicle (EV) manufacturers came out with their fourth-quarter delivery numbers today, sending their stocks all over the place. 📊

First, let’s start with everyone’s favorite, Tesla, which delivered mixed news to investors. It managed 1.81 million EV deliveries around the globe in 2023, meeting its full-year guidance and narrowly topping the consensus estimates. That was up 38% YoY but slowed from 2022. 

Read It