Rivian Automotive and Lucid Group tumbled on Thursday after their earnings experiences pointed to the impression of slowing electric-vehicle demand on their expensive ramp-up plans.
Rivian tanked 25% to a file low after it forecast flat development in annual manufacturing, additionally harm by a shutdown of its meeting line for upgrades. Lucid sank 9% as its manufacturing forecast additionally got here beneath estimates.
The businesses mentioned an unsure financial outlook and excessive rates of interest have been hitting demand for EVs, echoing remarks from market chief Tesla and legacy automakers like Ford.
“Regardless of having constructed a extremely rated and fascinating EV, Rivian seems to have hit a near-term air-pocket and caught the latest EV bug,” mentioned Canaccord Genuity analyst George Gianarikas, who minimize his worth goal on the inventory by $10 to $20.
EV startups have been burning billions of {dollars} in money of their efforts to develop, supply and ramp up manufacturing of autos, hoping to be the subsequent Tesla. Lucid reported quarterly losses of $654 million, whereas Rivian’s quarterly losses have been $1.54 billion.
Rivian was set to lose greater than $3.5 billion in market capitalization, if the losses maintain, whereas Lucid’s valuation was set to fall by practically $1 billion.
Their shares have had a weak begin to the 12 months, with Rivian down 34% and Lucid down 12%, after a tumultuous 2023 when Tesla’s worth battle roiled the business.
Rivian mentioned on Wednesday it anticipated to submit its first gross revenue within the fourth quarter, after it reported a lack of about $43,000 per automobile within the October-December interval.
Compared, Ford’s Mannequin E electrical automobile division misplaced a mean of greater than $47,000 per automobile in the identical interval.
Cheaper fashions
Rivian is betting on the R2 sport utility automobile set to be unveiled subsequent month to compete with Tesla’s best-selling Mannequin Y crossover and appeal to clients with a smaller and cheaper EV.
However the R2 SUV, which is anticipated to be priced round $50,000, is about to be launched solely in 2026.
Rivian CEO RJ Scaringe mentioned a lot of the upgrades to the R1 meeting line within the second quarter have been made to allow the R2 autos.
Lucid, in the meantime, plans to begin manufacturing of the Gravity SUV, with greater than 400 miles of vary and anticipated to be priced at $80,000 later this 12 months, with bigger volumes anticipated in 2025 onwards.
Lucid additionally mentioned a 3rd mannequin within the midsize class, slated for manufacturing in late 2026, however didn’t present additional particulars on the mannequin.
“We view near-term deliveries as an unknown, with that uncertainty spreading to Lucid’s Gravity SUV launch, with Lucid’s midsize program set for a 2026 debut,” Needham analyst Chris Pierce mentioned.