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The electric vehicle sector fell sharply on Wednesday after spiking COVID cases in Shanghai raised broad concerns that the industry-wide supply chain disruption could extend even longer than anticipated.
Chinese authorities extended a lockdown in Shanghai to cover all 26 million residents in a development that is seen as a test of how far the zero-tolerance COVID policy can go in the nation. Notably, Tesla (TSLA -4.4%) has told some suppliers and workers that the Shanghai factory will remain in lockdown until at least April 8 due to soaring COVID cases in the region, which would mark 12 full days of lost production for the EV leader.
Also in the mix is a negative report on Mullen Automotive (MULN -3.7%) from Hindenburg Research in which the short-selling firm called it among the worst EV hustles that it has seen in a crowded field of contenders.
The negative tone took away from a fairly solid update from Rivian Automotive (RIVN -4.2%), which said production more than doubled in the first quarter of 2022 even as it contends with the ongoing supply chain challenges.
On Wall Street, RBC reiterated an Outperform rating on Rivian (RIVN -4.2%) and said it presents a strong mid-term risk/reward profile for investors. Stronger than expected Q1 production was called a good first step to rebuilding investor confidence.
Decliners in the EV sector included Hyzon Motors (HYZN -15.9%), Helbiz (HLBZ -12.6%), Embark Technologies (EMBK -9.9%), Allego (ALLG -7.1%), Beam Global (BEEM -12.7%), Workhorse Group (WKHS -9.8%), Sono Group (SEV -9.6%), Chargepoint Holdings (CHPT -9.0%), Lordstown Motors (RIDE -7.4%), Blink Charging (BLNK -8.0%), TuSumple (NASDAQ:TSP -6.2%), Ayro (NASDAQ:AYRO -4.7%), Arrival (NASDAQ:ARVL -5.8%) and Proterra (NASDAQ:PRTA -0.3%).
Read more about Hindenburg Research’s attack on Mullen Automotive.
