Ford, Hertz warning for EVs as Canoo, VinFast, Nio stocks sink

October 27, 2023 04:00 AM PDT | By Invezz
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The electric vehicle (EV) industry is seeing major challenges as concerns among investors, industry players, and policymakers shift. Most EV stocks, including Tesla (TSLA), Canoo (GOEV), Nio, and VinFast (VFS) have all plunged recently.

Ford and GM EV news

There have been several important bad news for the EV industry recently. Last week, Tesla published weak earnings as its revenue and margin growth came under intense pressure. The company has been slashing vehicle prices recently in a bid to boost its waning market share. Tesla shares have slumped by more than 31% from the highest point this year.

Other EV companies have also warned about the state of the EV industry. The most recent company was Ford, which published weak results on Thursday. In a statement, the firm lamented that demand for its EVs was dwindling. As a result, it delayed its $12 billion investment in EVs and reduced its ambitions.

Ford is not alone. This week, General Motors scrapped its planned $5 billion plan to develop cheaper EVs with Honda. Like Ford, GM is seeing weaker growth and demand for its EVs as the strike continues. Watch here:

Hertz is having buyers remorse

Most importantly, Hertz, which is a leading car rental company in the US, is also changing its strategy. In a statement, the company lamented that its Tesla EVs had depreciated at a faster pace than its Internal Combustion Engine (ICE) ones.

The company cited Tesla’s decision to lower prices as the main reason. Also, it noted that maintenance costs for EVs was much higher than its traditional ICE vehicles.

Broadly, there are concerns that the transition to EVs and the accompanying mandates are happening at a faster pace than they should. For one, instead of being market-driven, the transition has been led by policymakers without experience in the industry.

Nio, VinFast, Canoo, ChargePoint stocks

The situation in the EV industry is worse than what reports are saying. Many vehicle dealerships are seeing weaker demand for these vehicles because of the higher prices, range anxiety, and charging infrastructure.

At the same time, supply for EVs is growing at a faster pace. Tesla expects to make over 1 million EVs this year while Byd has already sold over 2 million vehicles this year. Other companies like Fisker, Rivian, Nio, Xpeng, and Hyundai are also planning to boost production.

All these factors explain why many EV stocks have tumbled this year. Canoo stock price was trading at $0.26 after it crashed by over 98% from its all-time high. Similarly, VinFast stock has collapsed from over $92 to $5.70 while Mullen Automotive is down by 93% this year. Other EV stocks like Nio, Xpeng, Faraday Future, and Arrival have plummeted.

The post Ford, Hertz warning for EVs as Canoo, VinFast, Nio stocks sink appeared first on Invezz


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