Electric vehicle roundup: Tesla and Rivian in the spotlight, supply chain worries weigh
shapecharge/iStock via Getty Images

The electric vehicle sector turned lower in early trading on Monday after COVID developments in China set off worries about more production halts and supply chain snarls that could impact production.
The government in Shanghai has reportedly set a new target of zero cases at the community level by April 20, which means no new cases outside of quarantined zones. That may be a tough standard after 23,643 new local infections in Shanghai were reported for April 16, of which 722 were from outside the quarantined areas. The city also reported 19,831 new daily asymptomatic COVID-19 cases on April 17, as well as three deaths to mark the first fatalities during the current COVID outbreak in the region.
Notable electric vehicle stock decliners included Mullen Automotive (MULN
-11.6%), Volta Inc. (VLTA
-6.3%), Aurora Innovation (AUR
-4.5%), Electric Last Mile Solutions (ELMS
-4.5%), QuantumScape (QS
-4.9%), Rivian Automotive (NASDAQ:RIVN
-5.9%), Proterra (PTRA
-4.7%), XPeng (XPEV
-2.9%), Volcon (NASDAQ:VLCN
-5.1%) and Nio (NIO
-2.8%).
Tesla (NASDAQ:TSLA) is holding up better than most in the EV sector with a 0.05% tick higher to $985.33. Earlier on Monday, ARK Invest's Cathie Wood projected Tesla's (TSLA) share price could hit $4,600 per share by 2026. Piper Sandler also reminded investors that vertical integration is at the core of Tesla's (TSLA) EV advantage because the supply chain is said to be immature and cannot be relied upon to scale up quickly.
Piper also spoke favorably about Rivian Automotive (RIVN). The electric vehicle upstart is said to be singularly aware of what it takes to be the next Tesla.
Analyst Alexander Potter: "Vertical integration is costly, and there are no shortcuts. In its early days, Tesla dealt with delays, quality problems, and staggering cash burn. Rivian must endure this period, just as Tesla did. But we think the payoff will be worth it, because Rivian has a chance to consolidate three large segments of the auto market before Tesla releases competing products. And RIVN is insulated from many of the near-term headwinds."
Broad market update: Nasdaq, S&P 500, Dow Jones are mixed, rates come off highs.