Stockwatch: Week of January 03-07 2022

Amazon-Stellantis Collaboration

Stellantis is a multinational automotive conglomerate that was formed a year ago from the merger of Peugeot S.A. (Groupe PS) and Fiat Chrysler Automobiles N.V. (FCA) and includes high-profile French, German, Italian and US car brands.

The group will collaborate with Amazon to deliver software for the STLA SmartCockpit, which will run in millions of its vehicles globally, starting in 2024, as per the January 5th press release. [1]

Stellantis also chose Amazon Web Services (AWS) as its preferred cloud provider for vehicle platforms, while the US retailer will be the first commercial customer for Stellantis' new Ram ProMaster Battery Electric Vehicle (BEV) launching in 2023.

Furthermore, the Consumer Electronics Show (CES) kicked off in Las Vegas on Wednesday and Stellantis used the event to showcase its future technology. One of the highlights was Chrysler's all-electric Airflow Concept, as part of the brand's push to full electrification by 2028. [2]

STLA.fr rose on the news and heads towards a positive weekly start to the new year, despite today's losses at the time of writing.


Past Performance: Past Performance is not an indicator of future results.

Ford F-150 Lightining

The US car manufacturer provided its sales update this week, with its iconic F-series being the best selling truck in America, for the 45th straight year.

A day earlier, Ford (F.us) had announced the doubling of the production of the electric variant of the model - F-150 Lightining – due to increased demand.

The electric version of America's beloved truck may be up for some stiff competition, as Chevrolet unveiled the all-electric Silverado, which is not expected to be delivered this year though. [3]

We also await Tesla's futuristic Cybertruck, which was first revealed in late 2019, but deliveries have not yet begun. Tesla (TSLA.us) had announced record deliveries for the fourth quarter over the weekend.

Rivian Stock Drop

Rivian is an electric truck maker and one of the hottest startups in the EV arena, backed by Amazon, which owned around 20% as per a September 30 2021 filing [4]. Rivian went public just a couple of months ago, as it began trading on the Nasdaq Global Select Market on November 10, 2021.

The company currently has two models, the R1T pickup truck and the R1S SUV. As of December 15, 2021, it had produced 652 R1 vehicles and delivered 386 of those, including the production and sale of the first two R1S SUVs. [5]

Rivian had selected Amazon Web Services as its preferred cloud provider [6] and its share did not react well to the Amazon-Stellantis deal, nor Ford's F-150 Lightning production doubling. RIVN.us loses around 15% this week (prior to Friday's open).


Past Performance: Past Performance is not an indicator of future results.

Sony at CES

The Japanese giant was busy at the Consumer Electronics Show, showcasing an electric SUV at its booth - the VISION-S 02. This electric vehicle introduced a new form factor, using the same EV/cloud platform as the prototype (VISION-S 01), which is being tested on public roads. [7]

Sony announced that it will establish an operating company "Sony Mobility Inc." in the spring of 2022, through which the company intends to explore entry into the EV market.

On more traditional Sony territory, we got details on the next generation virtual reality headset, the "PlayStation VR2". [8]

SONY.us had jumped to multi-year highs on Wednesday (134.26), but could not hold onto the gains amidst a broader hit to the tech sector, being in negative weekly territory after yesterday's close.


Past Performance: Past Performance is not an indicator of future results.

Woolworths API Bid

The Australian grocery giant, withdrew on Firday its non-binding indicative proposal to acquire Australian Pharmaceutical Industries (API) [9]. Woolworths (WOW.au) had submitted the A$1.75/share buyout proposal in early December, while API had previously agreed with Wesfarmers Ltd (WES.au) on A$1.55/share offer.

API said that the implementation deed with Wesfarmers remains in place and is on track for completion in the first quarter of calendar year 2022.

Week of January 10-14

The earnings season gets underway in the US next week, with Delta Airlines (DAL.us), standing out on Thursday, followed by JP Morgan (JPM.us) and Citigroup (C.us) on Friday – all reporting before the opening bell.

Nikos Tzabouras

Senior Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 07 Jan 2022 https://www.stellantis.com/en/news/press-releases/2022/january/amazon-stellantis-collaborate-on-software-solutions

2

Retrieved 07 Jan 2022 https://media.stellantisnorthamerica.com/newsrelease.do

3

Retrieved 07 Jan 2022 https://media.chevrolet.com/media/us/en/chevrolet/home.detail.html/content/Pages/news/us/en/2022/jan/ces/0105-2024-silverado.html

4

Retrieved 07 Jan 2022 https://www.sec.gov/ix

5

Retrieved 07 Jan 2022 https://assets.rivian.com/2md5qhoeajym/3BYl8sLO3rzD9lluEwvXGE/754d4115dc0715d7e95e848556fc93cb/Rivian-Q3-2021-Shareholder-Letter.pdf

6

Retrieved 07 Jan 2022 https://press.aboutamazon.com/news-releases/news-release-details/rivian-selects-aws-its-preferred-cloud-provider-drive-efficiency

7

Retrieved 07 Jan 2022 https://www.sony.com/en/SonyInfo/News/Press/202201/22-002E/

8

Retrieved 07 Jan 2022 https://www.sony.com/en/SonyInfo/News/Press/202201/22-001E/

9

Retrieved 26 May 2022 https://www.api.net.au/wp-content/uploads/2022/01/Woolworths-withdraws-non-binding-proposal-to-acquire-API.pdf

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Past Performance: Past Performance is not an indicator of future results.

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