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. 🚄