Welcome to The Fly's latest edition of "Charged," where we look back at some recent analysts' notes, news and activity in the electric vehicle and clean energy space.

CHEVY BOLT PRODUCTION HALT: General Motors (GM) said it plans to extend a shutdown of a Michigan assembly facility to mid-October following a new recall of the car maker's Chevrolet Bolt vehicles over battery issues, Reuters' David Shepardson reported on September 16. The company said the extension of the production freeze at the Orion Assembly factory will go through at least October 15, the author said, noting that GM added it was slashing production at six other North American plants due to the ongoing chip shortage.

GM has also told some Chevrolet Bolt EV owners to park 50 feet away from other cars, Bloomberg's David Welch and Dana Hull reported the same day. The precaution would reduce the risk of a battery fire spreading to cars nearby, GM said. GM has recalled a total of 142,000 Bolt EVs due to the potential risk of batteries catching fire. The company will be telling Bolt owners who are concerned about parking in public places that it recommends keeping 50 feet from other cars in garages and lots, spokesman Dan Flores said.

WITHDRAWAL OF USPS BID PROTEST: Workhorse Group (WKHS) announced on September 15 that it has withdrawn its United States Postal Service bid protest complaint filed in the United States Court of Federal Claims. "After attending the recent Advanced Clean Transportation show, we are excited about the multiple business opportunities ahead for last-mile delivery truck and drone system technologies," said Workhorse CEO Rick Dauch. "These opportunities include several commercial industry markets as well as a broad array of initiatives designed to modernize and electrify government funded and owned vehicle fleets across the country at the federal, state and city level. Since I joined the company six weeks ago, we have been conducting a deep and intensive overview of all aspects of our business, including an examination of the history of our USPS bid and subsequent protest filing. The federal government has announced its intention to replace its fleet with electric vehicles, and we believe that the best way for us to work with any governmental agency is through cooperation, not through litigation. By withdrawing our protest, we can also better focus our time and resources on initiatives that we expect will be more productive for our company."

LONGEST-RANGE EV EVER RATED BY EPA: Lucid Group (LCID) announced on September 16 that the Lucid Air Dream Edition Range has received an official EPA rating of 520 miles of range. "It is the longest-range electric vehicle ever rated by the EPA - delivering at least 100+ miles of additional range over its closest competitor," the company stated. Several other versions of Lucid Air have also received their official EPA range ratings, including the Dream Edition Performance and Grand Touring versions on both 19" and 21" wheels. "Taken as a whole, these Lucid Air models now occupy the top six positions for overall EPA range ratings among all EVs, as well as the highest MPGe ratings in the Large vehicle class," the company said.

TESLA/FERRARI OF NEW EV AUTOMAKERS: Bank of America analyst John Murphy initiated coverage of Lucid Group with a Buy rating and $30 price target on September 15, calling it the "Tesla [TSLA]/Ferrari [RACE] of new EV automakers" as well as "one of the most legitimate start-up EV automakers." While he admitted his multiples used to establish his price target are at a premium compared to Tesla's early trading multiples and compared to average multiples from electric vehicle maker SPAC peers, Murphy said they are "still a notable discount" to Tesla's recent trading multiples on a forward five-year basis. In addition to the management team's experience, the analyst lists innovative and competitive technology validated by Formula E, an "interesting/attractive" product in the Air sedan, and the "arguably intangible value in the Lucid brand" as key competitive advantages.

Meanwhile, Morgan Stanley initiated coverage of Lucid Group with an Underweight rating and $12 price target at the start of last week. The firm said that, at a $31B valuation, the stock market appears to be ascribing an "unusually high" probability of scenarios where Lucid achieves very high market shares. Morgan added that it believes Lucid can occupy a sustainable niche place in a difficult market, though at this stage it sees "many obstacles" left to hang with more established EV titans.

XPENG LAUNCHES THIRD PRODUCTION MODEL: XPeng (XPEV) officially launched its third production model, the XPeng P5 smart family sedan. P5 is immediately available for order in six configurations in China in a recommended retail price range from $24,484 to $34,717. Customer delivery in China will start at the end of October.

Following the news, Morgan Stanley analyst Tim Hsaio said the company is "aiming to redefine the smart EV market" and that he believes the P5's features and technology will differentiate it from "me-too" products in the segment. The analyst, who believes the P5 features "competitive pricing and superior technology" when compared to the "best selling" Toyota (TM) Camry and VW (VWAGY) Magotan, highlights that investor feedback indicates they expect 8,000-10,000 units to be sold in 2021 and see the P5 outselling the P7 next year. Hsiao has an Overweight rating and $57 price target on Xpeng shares.

'FIERCE' COMPETITION: Bank of America analyst John Murphy downgraded Fisker (FSR) to Neutral from Buy with a price target of $18, down from $27. In a note to investors issued on September 16, Murphy said he views Fisker as "one of the more legitimate among the universe of start-up electric vehicle automakers," largely as a function of its relationship with contract manufacturer Magna (MGA), but he also noted that the competitive landscape is becoming "incredibly fierce."

SELL LORDSTOWN: In the same note, Bank of America's Murphy downgraded Lordstown Motors (RIDE) to Underperform from Neutral with a price target of $5, down from $11. The company is "just one of many participants" in the automotive industry evolution towards electrification and "one of the less legitimate" start-up electric vehicle automakers, Murphy told investors. While the company had originally ranked fairly well in his analysis, a series of operational and financial hurdles are now plaguing Lordstown as competition is "significantly heating up," the analyst added.

CAUTIOUS ON LEAR: BofA's Murphy additionally downgraded Lear (LEA) to Underperform from Neutral with a price target of $160, down from $200. Lear has been one of the best operators among seating suppliers, but its track record of "over-earning" in its seating and e-Systems segments has corrected more recently, Murphy said. Meanwhile, he sees valuation for Lear as "less compelling than other suppliers." Auto production disruption is "likely to most negatively impact the supplier link of the value chain," making that segment of his coverage where he remains relatively most cautious, the analyst added.

ON THE SIDELINES: Citi analyst Itay Michaeli initiated coverage of EVgo (EVGO) on September 15 with a Neutral rating and $10 price target. The analyst is taking a "patient approach" pending a better entry point or progress on the company's network. Michaeli is "fundamentally constructive" on EVgo shares, seeing catalysts over the next year given its pure-play status on U.S. electric vehicle adoption. However, EVgo's model is reliant on direct current fast charging utilization, which could lag actual electric vehicle uptake, the analyst told investors in a research note.

TIER 1 SUPPLIER RATINGS SHAKE-UP: Jefferies analyst David Kelley downgraded Lear (LEA) and BorgWarner (BWA) to Hold from Buy with price targets of $171 and $47, down from $200 and $50, respectively, on September 20. Following automaker production cuts, he is lowering his tier 1 supplier estimates for the third and fourth quarters and 2022. However, the analyst sees emerging signs of troughing electronic shortages and believes underperforming electronics exposed suppliers, such as Visteon (VC) and Gentex (GNTX), will be first to turn as the ability to offset elevated, but potentially troughing, pricing likely improves. Given still elevated freight, logistics, and commodities input costs, as well as the recovery pushout and expectations of ongoing volatility, Kelley believes stocks with cheaper valuations, such as BorgWarner and Lear, could underperform in the coming months.