Tesla said to be suspending Shanghai Model Y assembly later this month
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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.
SHANGHAI MODEL Y ASSEMBLY:
Tesla plans to halt assembly of the Model Y vehicle at its Shanghai plant between December 25 and January 1, Reuters‘ Zhang Yan and Brenda Goh report. According to two people with knowledge of the matter, the suspension is part of a cut in planned production of about 30% in the month for the Model Y at the plant.
RIVIAN PAUSES EU VAN PLANS:
Rivian has announced it is pausing plans to produce its electric commercial vans in Europe and will therefore no longer pursue the memorandum of understanding with Mercedes-Benz. This memorandum of understanding was signed in September. RJ Scaringe, CEO of Rivian said, “We’ve decided to pause discussions with Mercedes-Benz Vans regarding the Memorandum of Understanding we signed earlier this year for joint production of electric vans in Europe. As we evaluate growth opportunities, we pursue the best risk-adjusted returns on our capital investments. At this point in time, we believe focusing on our consumer business, as well as our existing commercial business, represent the most attractive near-term opportunities to maximize value for Rivian. We share the same goal as Mercedes-Benz Vans, to help the world transition to electric vehicles, and we look forward to exploring opportunities with them at a more appropriate time for Rivian.”
EV ARC CHARGING SYSTEMS:
Beam Global (BEEM) announced that it shipped and deployed a record number of sustainable EV ARC EV charging systems in the month of November, higher than any other month in company history. Beam Global is expanding its fleet of deployment personnel and vehicles, including its new ARC Mobility trailer, a specialized hydraulic transportation solution which enables the rapid deployment or relocation of off-grid EV ARC systems by a single operator. “Sales of our products are at all-time record highs and our ramp-up in production and operational capacity is well under way,” said Beam Global CEO Desmond Wheatley. “The accelerating urgency for EV charging infrastructure combined with the need for robust, off-grid solutions is driving significant growth in demand for our products, and our operations teams are taking the necessary steps to execute on this increasing demand. We have a great deal of operating leverage and the ability to continue to expand our output dramatically without an equivalent level of further investment.”
BofA analyst Julien Dumoulin-Smith upgraded SolarEdge (SEDG), telling investors that the company provided a line of sight at the firm’s Renewables Conference to a better outlook than he believes is appreciated by the Street. The company has returned to having pricing power and “operating leverage is here,” Dumoulin-Smith contends.
GLJ Research analyst Gordon Johnson double downgraded First Solar (FSLR). The shares are “priced for perfection” into a “(very) imperfect environment,” Johnson tells investors in a research note. First Solar in 2023 “will have to show and prove,” the analyst says. He sees the company’s 2023 being exacerbated by contracts that have adjustable pricing, the likely “imminent collapse” in polysilicon prices on a “record surge” in supply in Q4 of 2022, and heightened competition against a backdrop of a “materially lower” total addressable market for solar tax equity dollars. The analyst expects First Solar’s fundamentals to come under increased pressure throughout 2023.
BULLISH ON ARRAY:
Wells Fargo analyst Michael Blum initiated coverage of Array Technologies (ARRY). The analyst projects Array to grow revenues at a CAGR of 10%, driven by policy support, Solar’s low cost, and state/federal utility mandates to de-carbonize and achieve net zero targets. While Blum expects near-term growth could be muted due to restrictive government policies on solar panel imports, he likes the long-term prospects for utility-scale solar and sees Array at an inflection point to higher margins and free cash flow generation.
Originally Posted December 12, 2022 – What You Missed This Week in EVs and Clean Energy
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