Stock recap and outlook for E.V. Stocks, insider trades etc.
Stock recap
WEEKLY STOCKS RECAP
IN EV SPACE
Lucid Motors uses Tesla’s charging protocol.
Lucid Motors (NASDAQ:LCID) is the latest automaker to accept Tesla’s (NASDAQ:TSLA) NACS for electric vehicles. Lucid announced Monday that its EVs will use NACS connectors in 2025. Lucid’s CCS-equipped vehicles can charge at Tesla Superchargers with an adaptor.
Lucid joined Ford (NYSE:F) and General Motors (NYSE:GM) in using the Tesla Standard charging connection. Toyota (NYSE:TM), Honda (TYO:7267) (NYSE:HMC), Rivian (NASDAQ:RIVN), BMW (ETR:BMWG) (OTC:BMWYY), Hyundai (KS:005380) (OTC:HYMTF), Mercedes-Benz, and Fisker (NYSE:FSR) are others.
The week ended 15.36% lower for LCID.
Tesla’s China issues include market share loss and price increases.
The China Passenger Car Association reported a 2.6% drop in October Tesla deliveries, with 72,115 China-made EVs reaching customers. China-made Model 3 and Model Y sales rose 0.6% last year.
Tesla’s focus on sales rather than profits in China has fueled domestic competition. Despite discounts, Tesla’s profit margins fell without market share growth. Tesla’s market share in China’s EV sector fell to 9.89% in Q3, from 12.98% the previous quarter and 9.93% year over year.
To address these issues, Tesla China raised Model 3 and Model Y Long Range prices slightly. Starting at RMB 297,400, the Model 3 Long Range price increased by RMB 1,500 ($1 = 7.29 RMB), and the Model Y Long Range price increased by RMB 2,500.
Only the Long Range models saw price increases, suggesting other models may follow. The week ended with TSLA down 3.5%.
Xpeng rises as deliveries surge
However, Chinese EV maker XPeng (NYSE:XPEV) is rising. In October 2023, the company reported a record 20,002 Smart EV deliveries, up 31% month-over-month and 292% year-over-year. The XPENG G6, with increased production, delivered 8,741 units in a month, cementing its position as the top battery electric SUV in the RMB200,000-250,000 price range.
A large order backlog should help XPeng reach 55-57K units in Q4. Market expectations are high for increased volume in late 2023, sustained G6 and G9 orders, LFP-P7i gains, and Q4 margin recovery.
On October 24, XPeng’s annual Tech Day revealed its advanced driver assistance system plans. XNGP features independent of high-definition maps will be deployed in 50 cities by year’s end. AI Valet Driver, XPeng’s new ADAS function, will be available to select customers in 2023 and nationwide in 2024.
The SEPA2.0-based XPENG X9, a spacious 7-seater MPV with a futuristic starship-inspired exterior, added to the excitement. Our flagship model, the XPENG X9, will debut at Auto Guangzhou 2023 in November.
The week ended 12.55% lower for XPEV.
In Tech
Oil
Oil Market Settlements and Activity
WTI crude for December delivery neared $77.35 on Friday after settling the session at $77.17, up $1.43, or 1.9%.
WTI fell 4.1% for the week after losing 6% and 3% the week before. That followed October’s 11% drop in US crude.
After Thursday’s 0.6% gain, London-traded Brent crude for the most active January contract closed at $81.70 per barrel on Friday, up $1.42, or 1.8%. Brent lost 3.8% for the week after losing 6% and 2% the week before. Before that, October’s global crude benchmark fell 11%.
Technical Outlook: WTI Oil
According to Sunil Kumar Dixit, chief technical strategist at SKCharting.com, a WTI break below the 200-Day SMA, or Simple Moving Average, at $78.10, is a significant drop that resists immediate recovery attempts from $74.90.
“A rebound from the lows may face challenges at $78.60 and $79.90,” Dixit said.
Gold
Gold Market Settlements and Activity
December, New York’s most active gold futures contract, closed Friday at $1,942.70 per ounce after settling the session at $1,937.70, down $32.10, or 1.6%. The benchmark gold futures contract fell $61.50, or 3.1%, from the previous week’s near-flat finish.
The spot price of gold, which traders watch more than futures, closed at $1,938.28, down $20.32, or 1.04%. Real-time bullion spot prices fell 2.8% this week, adding to the 0.7% drop the week before.
Gold Spot Price Outlook
After rejecting the $2,010 high, spot gold has continued to decline, extending the correctional wave to the 38.2% Fibonacci zone at $1,933, which came from the $1,810-$2,010 bullish wave, said SKCharting’s Dixit.
“Next spot gold support is the 100-Day SMA of $1,926.80,” said Dixit. At $1,963, immediate resistance shifts base.”
Natural Gas
Natural Gas Market Settlements and Activity
On Friday, December’s most active natural gas futures contract on the New York Mercantile Exchange’s Henry Hub closed at $3.017 after closing at $3.033 per million metric British thermal units, down 0.3%. The benchmark gas futures contract fell almost 14% after rising 11% the week before.
Technical Outlook: Natural Gas
Dixit of SKCharting said a correctional wave from $3.63 on December gas leans on an ascending channel support line of $2.98 and settles at $3.03, the 50-day EMA.
“Weakness below the zone will meet next support at the 100-day SMA of $2.81,” Dixit said. Any recovery must pass $3.17 to reach $3.25 and $3.31.”
Insider Trades
Pharmaceutical activist Elliott invests in Biomarin
Activist investor Elliott Investment Management bought BioMarin Pharmaceutical (NASDAQ:BMRN), according to Reuters. This announcement boosted BioMarin’s stock price by almost 12% on Tuesday.
Elliott, a $60 billion asset manager, began discussions with the biotech firm over its future. Reports say the hedge fund invested over $1 billion in BioMarin.
Elliott frequently targets healthcare firms. It gained board seats at Catalent (NYSE:CTLT) in August and joined a Syneos privatization coalition this year. Elliott helped sell Alexion Pharma and Allergan.
McMahon’s $670 million equity sale drops TKO Group stock 6%.
The announcement that big shareholder Vincent McMahon will sell 8.4M shares of common stock in a secondary offering sent TKO Group (NYSE:TKO) down over 6% pre-market. Based on a $79.80 per share public price, the planned stock sale is worth $670M.
TKO also plans to purchase back $100M of Class A common stock from the underwriter. McMahon sells these shares. He will receive all net proceeds from this offering, while TKO is not selling shares.
CEO/Director buys
Jeffrey Ubben, a director of Exxon Mobil (NYSE:XOM), bought 250,000 common shares for $26.5 million at $105.951-$105.9882. The current purchase gives Ubben 2,077,000 indirectly through Inclusive Capital Partners. He holds 13,000 shares personally.
Robert Livingston, director of Amphenol (NYSE:APH), bought 11,839 common shares valued over $1M at $84.81. The current purchase gives Livingston 59,120 ordinary shares.
Air Products and Chemicals (NYSE:APD) Chairman/President/CEO Seifi Ghasemi bought 10,000 common shares at $252.34, worth over $2.5M.
Two major insider buy disclosures occurred at Sarepta Therapeutics (NASDAQ:SRPT). At $78.57-$81.26, CEO and President Douglas Ingram bought 25,225 common shares for $2M. Richard Barry, Director, bought 50,000 common shares for around $4M at $78.81.
Weekly Earnings Calendar
Monday Nov 13
Mizuho Financial Group (MFG), XP Inc. (XP), Sun Life Financial (SLF), Tyson Foods (TSN), and AECOM (ACM)
Tuesday, Nov 14
The Home Depot (HD), Sumitomo Mitsui Financial Group (SMFG), Mitsubishi Financial Group (MUFG), Nu Holdings (NU), Sea Limited (SE), and Tencent Music Entertainment Group (TME)
Wednesday, Nov 15
Cisco Systems (CSCO), TJX Companies (TJX), Palo Alto Networks (PANW), Target (TGT), JD.com (JD), XPeng (XPEV), Catalent (CTLT), and Tetra Tech (TTEK)
Thursday, Nov 16
Walmart (WMT), Alibaba Group (BABA), Applied Materials Inc. (AMAT), NetEase Inc. (NTES), Ross Stores (ROST), Warner Music Group (WMG), NICE Ltd. (NICE), Bath & Body Works (BBWI), The Gap Inc. (GPS), Macy’s (M), and Spire Inc. (SR)
Friday, Nov 17
BJ’s Wholesale Club (BJ), Atkore Inc. (ATKR), and Spectrum Brands Holdings (SPB)
For Details
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