The electric vehicle sector underperformed on Thursday amid persistent concerns about global electric vehicle demand, the competitive pricing backdrop in China, and general risk-off trading across the market. There have also been more indications that electric vehicle demand in the U.S. was pulled forward to August and September due to the expiration of the EV tax credit to a larger degree than originally forecast.
Aptera (SEV) was the biggest decliner, with a 12.2% drop, while Polestar Automotive (PSNY) shed 7.7%. Tesla (TSLA) was one of the leading decliners in the S&P 500 Index, with a 7.1% swing lower. Lucid Group (LCID) -7.2%, Rivian Automotive (RIVN) -6.6%, NIO (NIO) -4.0%, and VinFast Auto (VFS) -3.4% were also down more than the broad market.
The EV sector also woke up to the news that Waymo (WAYMO) has started offering fully autonomous freeway rides across the San Francisco Bay, Phoenix, and Los Angeles regions. “We’re offering freeway access to a growing number of public riders and will introduce the service to more over time, including as we expand freeway capabilities to Austin, Atlanta, and beyond,” Waymo said.
Analysts have highlighted that a rapid expansion by Waymo (WAYMO) and Uber (UBER) of their autonomous fleets could pose another headwind for Tesla (TSLA) as it looks to build a large-scale robotaxi network.