EV Roundup: HMC Electrification Progress, Q2 NIO Loss & More

The electric vehicle (EV) revolution is accelerating, with traditional automakers working hard to establish a solid foothold in this space. Last week, the Japan-based automotive bigwig Honda (HMC Free Report) has announced a few deals, which will accelerate its EV efforts. American-Italian automaker Stellantide (STLA Free Report) has also been focused on boosting its electrification plans in recent months. Building on the success of the Jeep Wrangler 4xe, its best-selling plug-in hybrid vehicle in the United States, and the recently introduced Grand Cherokee 4xe, Stellantis-owned Jeep is poised to develop a full line of electrified products. Meanwhile, the Amazon-backed EV startup Rivian Automotive (SHORE Free Report) has partnered with Mercedes-Benz Group AG (MBGAF Free report) to jointly produce electric vans in Europe. The famous Chinese electric vehicle player NIO inc. (NIO Free report) released the results for the second quarter of 2022.

In the headlines

Honda announced that it has entered into a partnership with Hanwa to facilitate the stable supply of battery materials, in particular nickel, cobalt and lithium, essential components for electric vehicle batteries. Hanwa’s strength in resource sourcing is remarkable, and similar leverage will pay off for Honda. But, instead of relying solely on Hanwa for supply, Honda said it will continue to rely on various other suppliers to maintain a steady flow of resources.

In another development, Honda said its Chinese unit would form a joint venture (JV) with Dongfeng Motor and Guangzhou Automobile to source EV batteries. Honda’s Chinese division will also strengthen its partnership with CATL to ensure stable battery supply. Currently, Dongfeng Honda and Guangqi Honda obtain their batteries from CATL. The latest move will allow centralized battery power through the upcoming joint venture, which will result in increased efficiency. Honda will hold 50% stake in the joint venture, while Dongfeng and Guangzhou will hold 25% each.

Honda currently carries a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks #1 (Strong Buy) ranking stocks here.

NIO suffered a loss per American Depositary Share (ADS) of 25 cents in the second quarter of 2022, larger than the loss of 7 cents a year ago amid higher operating expenses, despite improved deliveries. Revenue of $1,536.6 million was up 21.8% year over year on strong deliveries. NIO delivered 25,059 vehicles in the second quarter, including 3,681 ES8s, 9,914 ES6s, 4,715 EC6s and 6,749 ET7s. Shipments increased by 14.4% over the prior year quarter.

Cash and cash equivalents totaled $3,659.8 million as of June 30, 2022, compared to $2,694 million as of June 30, 2021. The company ended the second quarter with long-term debt of $1,815.7 million. of dollars. For the third quarter, NIO expects deliveries in the range of 31,000 to 33,000 vehicles, reporting a year-over-year increase of 26.8 to 35 percent. Revenue is projected to be between $1,918 million and $2,030 million, indicating a year-over-year increase of 31 to 38.7 percent.

StellantideThe Jeep brand has announced a comprehensive plan for its next generation of fully electric 4xe vehicles. It will introduce four new all-electric SUVs in North America and Europe by the end of 2025. The announcement follows Stellantis Dodge’s recent unveiling of the Dodge Charger Daytona SRT, a high-performance electric vehicle concept. SUVsā€”Jeep Recon and Wagoneer S.

Jeep Recon will be one of the first all-new electric SUVs to launch in North America. Wagoneer S, the all-new all-electric Wagoneer. will strengthen the premium SUV segment of the brand. It will have off-road handling, advanced technology focused on the Jeep brand and other impressive performance features. The new all-electric Jeep Avenger will launch in Europe early next year following its debut at the Paris Motor Show in October this year. While STLA aims for 50% of Jeep brand sales in the United States to be all-electric by 2030, 100% of the brand’s sales in Europe aim to be all-electric in Europe by the end of the year. decade.

Rivian announced a joint venture with Mercedes-Benz developing large commercial electric vans to meet the growing demand for cleaner and more sustainable commercial vehicles. According to the memorandum of understanding, the companies will jointly invest in the vehicles that will be sold under the Mercedes-Benz and Rivian brands. The new jointly formed company intends to set up a plant in Central or Eastern Europe at an existing Mercedes-Benz site within a few years. The plant aims to manufacture vehicles based on the electric vans the two companies are currently producing.

There will be two van models. One will be built on Mercedes’ Vans Electric Architecture (VAN.EA) platform and the other on Rivian’s second-generation electric van platform, the Rivian Light Van (RLV). Both companies are driven by their vision to electrify the minivan market. Mercedes-Benz is a resource-rich company with a long-standing reputation of more than two decades in building commercial vans. The partnership will greatly benefit a new startup like Rivian by leveraging Mercedes’ resilient supply chains.

Price performance

The following table shows the price movement of some of the major players in the electric vehicle industry over the past week and the six-month period.


Image source: Zacks Investment Research

What’s next in space?

Stay tuned for announcements of upcoming EV models and all important updates from the boiling industry.


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