EXRO Technologies (EXRO.TO) - Technical Update

EXRO share performance vs the EV space

Despite a strong overall market, the sentiment in the EV space has been negative for the last 5 months (shown in the first chart below).  The top performing names, Tesla (TSLA) and BYD company LTD (BYDDF), are still underwater by 16% with the biggest loser Fisker (FSR) losing 90% of its value.  During this time EXRO’s performance has been middle of the pack, down 60%.

With EXRO back down near its lows of 2022 we decided to look at what EXRO’s share performance looks like in comparison to its EV peers over this timeline.  As we can see below EXRO, despite selling off over the past year, is still outperforming names like Tesla, Rivian and Fisker. 

Expanding our view to include the world’s largest EV manufacturer, BYD, we can see that this sell off in EV stocks is happening across the globe.  Pressure in the space is being driven by the perception that demand is lagging expectations, despite the continued growth in EVs. 

In an article published by Adamas Intelligence (https://www.adamasintel.com/global-ev-industry-breaks-records/) they highlight Over 19.2 million EVs, including plug-in and conventional hybrids, were registered globally last year, 4.6 million more than in 2022. 

BYD dropped 12% during this time frame despite taking the title of largest EV manufacturer in Q4/23.  As highlighted in the MIT Tech Review (https://www.technologyreview.com/2024/01/30/1087393/byd-shipping-electric-cars-china) demand for these cars overseas has grown so much that BYD had to add its own shipping fleet.  They added one RORO (Roll on/Roll off) ship to help deliver its cars and plans on adding another 7 over the next two years, each with a capacity of 7K cars.