Charged: Analyst “befuddled” on FSD ahead of Tesla robotaxi event

Institutional investors and professional traders rely on The Fly to keep up-to-the-second on breaking news in the electric vehicle and clean energy space, as well as which stocks in these sectors that the best analysts on Wall Street are saying to buy and sell.

From the hotly-debated high-flier Tesla (TSLA), Wall Street’s newest darling Rivian (RIVN), traditional-stalwarts turned EV-upstarts GM (GM) and Ford (F) to the numerous SPAC-deal makers that have come public in this red-hot space, The Fly has you covered with “Charged,” a weekly recap of the top stories and expert calls in the sector.

FSD AHEAD OF OCTOBER ROBOTAXI: Truist kept a Hold rating and $215 price target on Tesla after testing the company’s full self-driving, or FSD, technology for the third time in a 10-mile trip. While the acceleration, deceleration, lane changes, and lane positioning felt smoother and human-like, the test also contained two “fast fails” – one as FSD made a left turn from a second-from-left non-turn lane, through a red light and one when the FSD put the car directly in the middle of two lanes, the firm tells investors in a research note. FSD v12.5 does not “solve autonomy” or appear to approach RoboTaxi capabilities, and the firm remains “befuddled” as to what Tesla might introduce in its planned RoboTaxi event in October, Truist added.

Click here to check out Tesla’s recent Media Buzz Sentiment as measured by TipRanks.

FASTEST CHARGE: Zeekr’s (ZK) upgraded EV batteries support 5.5C ultra-fast charging that allows vehicles to charge from 10% to 80% in just 10.5 minutes. The new charging speed record is achieved by Zeekr’s new 007 sedan model carrying the new lithium iron phosphate batteries and connected with Zeekr V3 ultra-fast charging piles. Thanks to the optimized materials and upgraded technology, the speed is higher than what’s achieved by existing nickel-cobalt-manganese batteries, representing the new achievement by Zeekr’s in-house e-powertrain R&D team. Thanks to the enhanced battery management system, BMS, the vehicle’s charging experience remains stable and fast even in harsh environmental conditions. At temperatures as low as -10 degree Celsius, the vehicles charge from 10% SOC to 80% SOC within just 30 minutes, assuring users of swift and reliable charging performance. Zeekr has opened over 500 ultra-fast charging stations in China with over 2,700 charging piles, all of which can support 800V charging. Zeekr plans to expand the network to 1,000 ultra-fast charging stations in 2024 and will be operating over 10,000 ultra-fast charging piles in 2026.

GOING CONCERN CLAUSE: DA Davidson downgraded Xos (XOS) to Neutral from Buy with a price target of $9, down from $17, following the Q2 report. Xos continues to grow sales, has turned gross margin positive, and appears likely to beat 2024 guidance and turn free cash flow positive in 2025, the firm tells investors in a research note. However, DA Davidson says it has made it a policy to avoid recommending electric vehicle stocks with a “going concern” clause in its SEC filing. At the time of filing, Xos had debt due in August 2025, technically causing this clause, contends the firm. It notes the company expects to resolve the issue in the coming months. DA Davidson believes Xos remains one of the most-promising EV start-ups left despite the downgrade.

REVERSE STOCK SPLIT: Faraday Future (FFIE) implemented a reverse stock split of the issued and outstanding shares of the company’s common stock, par value $0.0001 per share, at a ratio of 1-for-40, that became effective at 5:00 p.m. ET on August 16. As a result of the reverse stock split, every 40 shares of the company’s issued and outstanding common stock will be automatically combined and converted into one issued and outstanding share of common stock. The reverse stock split impacts all holders of the company’s common stock proportionally and will not impact any stockholder’s percentage ownership of the company’s common stock.