Tesla climbs while other EV makers hit brakes after rally (updated)

Sono NV

17/11/2021 17:24

(Adds detail on Tesla share sale, Sono surge, options trading)
    By Medha Singh
    Nov 17 (Reuters) - Shares of Tesla  TSLA.O  climbed for a
second day on Wednesday, gaining 4% after Chief Executive Elon
Musk sold more of his shares, while other high-flying electric
vehicle makers hit the brakes on a euphoric rally.
    Luxury electric car maker Lucid Group Inc  LCID.O  tumbled
8%, while Rivian Automotive Inc  RIVN.O  dropped about 15%, down
for the first time since its blockbuster market debut last week
made the company the second-most valuable U.S. automaker.
    Lucid's market value eclipsed that of Ford  F.N  on Tuesday
after the company said it is confident of producing 20,000 of
its upcoming Lucid Air sedans in 2022.
    Analysts said Rivian's  RIVN.O  stunning show in its initial
public offering lifted demand for other EV stocks. 
    Tesla shares climbed 4% in a second day of gains as
investors appeared to take in stride Musk's sale of another $973
million in stock to pay taxes after exercising options.
 urn:newsml:reuters.com:*:nL1N2S732K
    Musk has now sold a combined 8.2 million shares since Nov.
8, making up about half the 10% of Tesla shares he pledged to
sell earlier this month. Gross proceeds of his stock sales are
about $8.8 billion.  L4N2S23GH  
    EV manufacturers could benefit from significant, new EV
subsidies from governments, including U.S. President Joe Biden's
"Build Back Better" spending plan which calls for expanded tax
credits for individuals and businesses to buy electric vehicles.
    Sono Group NV  SEV.O , which makes electric cars integrated
with solar panels, surged 80% in its Nasdaq debut.  urn:newsml:reuters.com:*:nL4N2S83AE
    Canoo  GOEV.O  jumped 7.3% after the electric pickup truck
maker said it would start U.S. production in the final quarter
of 2022, sooner than previously announced 2023.  urn:newsml:reuters.com:*:nL4N2S734J
    Lucid, Tesla and Rivian were among the top-most discussed
stocks on investor-focused website stocktwits.com, signaling
interest from small-time investors.
    Electric vehicle makers have also drawn huge interest from
options traders.
    Tesla, Lucid, Rivian and blank-check company Gores
Guggenheim  GGPI.O , which is in a deal to take Swedish
electric-car maker Polestar public, were among the top 20 most
actively traded names in the options market this week, according
to Trade Alert data.
    "What you're seeing is these unbelievable valuations when
you don't have any profitability," said Stephanie Lang, chief
investment officer at wealth management firm Homrich Berg.
    "You have to be careful here because oftentimes when
valuations really are stretched and have no basis, that's going
to end badly."

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Three of the most valuable U.S. carmakers are EVs now Three of
the most valuable U.S. carmakers are EVs now    https://tmsnrt.rs/30vfPbv
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Medha Singh and Devik Jain in Bengaluru;
additional reporting by Noel Randewich in Oakland, California
and Saqib Iqbal Ahmed in New York; Editing by Maju Samuel and
Bernadette Baum)
 ((Medha.Singh@thomsonreuters.com; within U.S. +1646 223 8780,
outside U.S. +91 80 6182 2802; Twitter: https://twitter.com/medhasinghs;))