EV stocks: Ford splits business, Rivian raises prices, wins renewable pure-plays

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The electric vehicle sector is abuzz with new developments including Ford (F +6.3%) confirming the automaker’s separation plans VE company.

General Motors (GM +2.9%) and Stellantis (STLA +2.6%) both posted gains as investors weighed the implications for these legacy auto giants. Meanwhile, Russia’s ongoing attack on Ukraine has some investors betting that electrification initiatives will accelerate in the electric vehicle sector as part of a national goal to reduce dependence on electricity. oil. Winners included XL Fleet (XL +13.0%), Tritium DCFC (DCFC +3.1%), Lightning eMotors (ZEV +3.0%), REV Group (REVG +4.1%), Last Mile Electrical Solutions (ELMS +6.2%), Embed Technology (EMBK +2.9%), Microvast Holdings (MVST +4.3%) and Hyliion Holdings (HYLN +2.6%) with the eyes of renewable energy investors. Arrival (ARVL +3.2%) also rebounded after the company’s earnings report and production update were well received.

Among the industry laggards on Wednesday were Rivian Automotive (RIVN -11.5%), which said it raised the prices of its vehicles by about 20% due to inflationary pressures and rising component costs. This prompted Tesla (TSLA -0.6%) CEO Elon Musk tweeted that Rivian’s “negative gross margin will be staggering” and warned that it would be “nearly impossible” for electric vehicle startups to make affordable electric pickup trucks. Lordstown Motors (RIDE -10.6%), Workhorse Group (WKHS -4.8%), lucid group (LCID -3.2%) and Proterra (PTRA -6.6%) also fell in this context.

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