The severe downturn in electric vehicle stocks could not get any worse. In the U.S. Fisker discounted its vehicles by up to $24,000, seeking to increase cash flow to avoid bankruptcy. Lucid Motors (LCID) required an affiliate of PIF to invest $1 billion earlier this week.
In China, Nio, Xpeng (XPEV), BYD (BYDDY), and Li Auto (LI) traded sharply lower throughout the week. Amid the doom, China’s Xiaomi, known best for its smartphone, will launch its EV today. Its pricing may appeal to consumers, despite a wariness to buy expensive goods. The firm has over 70 stores in which to showcase the glamorous vehicle.
In the fast food sector, consumers sensitive to inflation are paring their orders. Those with low income will spend less at McDonald’s (MCD) and Wendy’s (WEN) as menu item prices rise. Expect people to divert their income to the grocery stores. This will give Costco (COST), Walmart (WMT), and Kroger (KR) a bigger lift. All three stocks closed near their 52-week high. COST stock pulled back after posting quarterly results.
Tomorrow, the core price consumer expenditure report will remind investors how high inflation remains. Investors should wait for this data before betting on a recovery in restaurant stocks. This includes Starbucks (SBUX). Conversely, Chipotle Mexican Grill (CMG) is the exception. The firm plans to split shares, which would increase retail investor interest.
