Charged: Tesla said at work on smaller, cheaper EV

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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.

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SMALLER, CHEAPER EV: Tesla has contacted suppliers recently to discuss the details on developing a smaller, cheaper electric SUV, Reuters reports, citing four people familiar with the matter. The SUV would be a new vehicle and not a variant of the company’s current Model 3 or Y, the sources added.

TARGET CUTS: RBC Capital lowered the firm’s price target on Outperform-rating Tesla to $480 from $500 and on Sector Perform-rated Lucid Group (LCID) to $8 from $10 as part of a broader research note previewing Q1 for Global Auto names. U.S. OEMs and suppliers have recently pulled back amid macroeconomic concerns tied to geopolitical tensions in the Middle East, though while elevated fuel prices may support EV adoption in Europe, the firm sees limited mix shift in the U.S., where government incentives have been the primary demand driver for EV sales, the firm tells investors in a research note. RBC notes however that the USMCA trade agreement – United States-Mexico-Canada Agreement – resolution could be delayed as a result of the Iran conflict.

INFLATIONARY LOGISTICS COSTS: Jefferies analyst Julien Dumoulin-Smith lowered the firm’s price target on First Solar (FSLR) to $187 from $205 and keeps a Hold rating on the shares. The firm, which increasingly flags concerns around inflationary logistics costs permeating through the industry due to the Middle East conflict possibly impacting near-term margins, lowers its view of First Solar’s margin profile for FY26.