Tuesday Ticker: April 19, 2022

Toronto, Ontario ⁠— It’s all about automakers in this weekly Tuesday ticker as electric vehicle stocks are shocked as analysts worry about potential Chinese COVID restrictions; Toyota delivers less than surprising news about its May 2022 production outlook and Elon Musk continues to worry investors about his mission to buy Twitter.

Electric hiccups
Electric vehicle stocks saw declines across the board in early trading on Monday, likely due to China’s zero COVID targets and associated supply chain delays, analysts said.

The Shanghai government has reportedly set a new target of zero COVID cases outside quarantine zones by April 20. The city reported 23,646 new local infections on April 16.

Shares of Rivian were down more than 5% from Thursday’s close late Monday, while electric vehicle charging infrastructure company Volta saw its shares fall nearly 6% from Thursday’s close. Other companies whose shares were affected included development-stage maker Mullen Automotive, which fell more than 13% from Thursday’s close and lithium metal battery researcher Quantumscape fell 4 .7% from Thursday.

Tesla oddly survived supply chain issues, dropping nearly a percentage point from Thursday’s close in the early hours of trading, but gaining more than 2% from its pre-holiday close. Monday afternoon.

Analysts are no doubt watching closely after the EV automaker cut its delivery estimates for 2022⁠ just a few weeks ago.

“Vertical integration is expensive and there are no shortcuts,” said market analyst Alexander Potter. “In its early days, Tesla faced delays, quality issues and staggering cash burn. Rivian has to endure this time, just like Tesla did.

“But we think the payoff will be worth it, as Rivian has a chance to consolidate three large automotive market segments before Tesla launches competing products. And RIVN is isolated from many of the short-term headwinds.

Tic-tac goes to Toyota clock
Toyota informed its investors on Monday that the automaker would cut its May production plan by 100,000 units worldwide.

“Due to the impact of semiconductor shortages, we have adjusted our production plans…compared to the number of units supplied to our suppliers at the start of the year,” the OEM wrote in a statement. Press release. “Right now, the global production plan for May is around 750,000 units.”

Investors don’t seem surprised by the news⁠ – automakers around the world have long been grappling with semiconductors and other pandemic-related shortages⁠. As of Monday’s close, Toyota shares were up 1.5% from Friday.

Twitter owned by Tesla
As Tesla CEO Elon Musk continues his mission to buy social network Twitter, Tesla investors are concerned about the CEO’s shared responsibilities.

“Elon Musk’s offer to buy Twitter is the latest development in a week-long saga that is simply a distraction from the many challenges Tesla itself faces,” said company CEO David Trainer. investment research firm New Constructs, in an email to CTV. News.

Musk already touts leadership roles at SpaceX, The Boring Company, Neuralink and, of course, Tesla.

Tesla stock fell slightly last Thursday, after Musk’s initial revelation he had made a $41 billion bid to buy Twitter. The CEO took a 9.2% stake in the company in March, a fact revealed via Bloomberg News in early April, making him the company’s largest individual shareholder.