EV Roundup: NIO Raises More Than $700M, RIVN to Ride TSLA’s NACS Wave & More

Last week, China-based electric vehicle (EV) maker NIO, Inc. NIO secured a $738.5 million investment from Abu Dhabi’s CYVN Holdings. The company is eyeing entry in the United Arab Emirates (UAE) market and the investment sets the stage for a global EV showdown. The significant investment from Abu Dhabi’s CYVN Holdings in Nio comes at a strategic time for the EV player, providing crucial financial support and aiding its global expansion plans. As China’s EV companies continue to attract Middle East investments, it will be interesting to see how this partnership catalyzes NIO’s growth in the global EV market.

Rivian Automotive RIVN announced its decision to adopt Tesla‘s TSLA EV charging standard. The EV charging landscape is undergoing a seismic shift, largely characterized by a major move toward the adoption of Tesla’s North American Charging Standard (NACS) connector.

Fisker Inc. FSR, the EV manufacturer known for its commitment to sustainability, began delivering its highly anticipated Fisker Ocean SUV to customers in the United States.

Finally, Stellantis STLA and Foxconn unveiled SiliconAuto, a game-changing joint venture that will redefine semiconductors for the electrified future.

STLA currently sports a Zacks Rank #1 (Strong Buy). NIO and RIVN carry a Zacks Rank #3 (Hold) each, while TSLA and FSR are #4 Ranked (Sell).

You can see the complete list of today’s Zacks Rank #1 stocks here.

Last Week’s Top Stories

1. Rivian announced plans to incorporate Tesla’s charging ports into future automobiles, gaining access to the EV behemoth’s supercharger network. This move marks Rivian as another high-profile adopter of Tesla’s charging technology that is rapidly becoming the industry standard. Rivian is the latest automaker following Ford and General Motors to join the bandwagon. And it’s not just the automakers, even the major charging companies have been shifting toward Tesla’s technology. This shift promises a more streamlined charging experience for EV drivers and potentially lucrative opportunities for investors.

Starting in spring 2024, Rivian plans to utilize the Supercharger network for charging its highly acclaimed R1T and R1S models. Additionally, beginning in 2025, Rivian intends to include NACS ports as a standard feature in their future R1 vehicles, as well as in the forthcoming R2 platform.

2. Abu Dhabi’s CYVN Holdings, a smart mobility-focused investment vehicle majority-owned by the Emirati government, has announced a massive investment of $738.5 million in NIO. The deal, expected to close in early July, will see CYVN Holdings securing a 7% stake in NIO, which will issue 84,695,543 Class A ordinary shares at $8.72 apiece as part of the deal. This strategic investment comes at a crucial time for NIO, which recently reported a slowdown in car deliveries impacting cash flow, resulting in delayed capital expenditures and R&D projects.

The Abu Dhabi investment marks a significant milestone for Nio’s global expansion strategy. The company initiated its internationalization process in 2021, starting with Norway and then expanding to several other European markets. Now, with this strategic partnership with CYVN Holdings, Nio is poised to extend its reach to UAE, an attractive market in transition to net-zero emissions.

3. Italian-American auto manufacturer Stellantis has teamed up with Hon Hai Technology Group (“Foxconn”) to establish SiliconAuto, a 50/50 joint venture. This collaboration aims to design and distribute a range of state-of-the-art semiconductors, catering to the evolving needs of the automotive industry, including Stellantis, starting in 2026. Drawing upon Foxconn’s expertise and vast experience in the Information and Communication Technology industry and Stellantis’ comprehensive understanding of global mobility requirements, SiliconAuto is poised to revolutionize the semiconductor landscape for the automotive sector. The joint venture will offer an auto industry-centric source of semiconductors, focusing on computer-controlled features and modules, with particular emphasis on EVs.

By joining forces with Foxconn in the SiliconAuto joint venture, Stellantis secures a competitive advantage in this transformative market. With access to a dedicated supply of state-of-the-art semiconductors, the automaker can accelerate the development and production of next-generation EVs, ultimately contributing to the mass adoption of electric mobility and the realization of a cleaner, greener future.

4. Fisker successfully delivered the first batch of 22 Fisker Ocean SUVs to customers in the United States. Boasting an impressive range of 360 miles, the Fisker Ocean One and Fisker Ocean Extreme offer the longest electric SUV range in their class. This achievement further solidifies Fisker’s position as an industry leader in terms of both innovation and sustainability. It is worth noting that Fisker has already commenced deliveries in Europe, following a unique dual-market certification strategy that allowed the company to enter both markets simultaneously.

With its impressive features, class-leading range and unwavering commitment to sustainability, the Fisker Ocean SUV represents a new era of electric vehicles. The launch edition starts at $68,999 for the Fisker Ocean Extreme model in the United States, while the base Fisker Ocean Sport trim level is available for $37,499. As Fisker continues its delivery rollout, customers can expect to enjoy a driving experience that combines emotion, sustainability and cutting-edge technology.

Price Performance

The following table shows the price movement of some of the major EV players over the last week and six-month period.

Image Source: Zacks Investment Research

What’s Next in the Space?

Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.

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