Electric vehicle (EV) stocks are down this morning after Tesla’s (NASDAQ:TSLA) less-than-stellar earnings call yesterday. This includes Nio (NYSE:NIO) stock, which is down more than 3% at the time of this writing.
Reasonably so, plenty of hopes were pinned to Tesla’s financial results only for the EV giant to fall short of expectations. Tesla’s revenue fell 7% in its fiscal second quarter to $19.9 billion compared to $21.27 billion in the same quarter last year. This marks its second-straight top-line decline in a row after its miserable Q1 earnings results.
Investors were also disappointed to hear that Tesla will delay the unveiling of its highly anticipated robotaxi until Oct. 10, despite CEO Elon Musk first stating the robotaxi event would be set for Aug. 8.
That said, Musk also feels confident that the inaugural robotaxi ride will take place next year, albeit while acknowledging his predictions have been “overly optimistic in the past.”
Unfortunately, when a company as big as Tesla hits turbulence, EV makers at large feel the impact. Indeed, EV makers are down across the board today, seemingly a return to this year’s prior form after a brief bullish rally.
Indeed, yesterday’s earnings served as a wake-up call of sorts. EV stocks have regained investor sentiment over the past few weeks after Tesla announced better-than-expected Q2 deliveries earlier this month. Unfortunately, it seems the rally was short-lived.
Losses Widen for NIO Stock After Tesla Earnings Bust
With today’s drop, NIO stock is down 48% so far this year as one of many big losers of 2024’s EV winter. Not alone, fellow Chinese EV makers Xpeng (NYSE:XPEV) and Li Auto (NASDAQ:LI) are also in the red today, down about 4% each. They’ve also both lost more than 40% of their value so far in 2024.
High interest rates, rising material costs and wavering demand have resulted in EV stocks being mostly an afterthought this year. That’s especially true compared to semiconductor, cloud and other tech-growth stocks, which have enjoyed a record year thus far.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
