Lucid Motors (LCID) significantly missed fourth-quarter earnings estimates late Monday and trimmed production forecasts for 2022. Early, Lordstown Motors (ride) join Nicola (NKLA) to report losses less than feared. The stock obviously fell sharply in after-hours trading.
Saudi-backed Lucid also announced the establishment of a plant in Saudi Arabia in a separate statement late Monday. Among the electric vehicle startups, Lucid is generally viewed as the most credible potential Tesla (TSLA) Challenger because he already delivers vehicles.
EstimatesAnalysts expected Lucid to lose 35 cents on a share of $36.7 million in revenue. in Q3, Lucid reported a loss of 43 cents per shareworse than expected.
consequences: Lucid lost 64 cents on a share of $26.392 billion in revenue.
prospects: Lucid has updated production guidance for 2022. It now expects between 12,000 and 14,000 vehicles, versus 20,000 earlier.
“This reflects the extraordinary supply chain and logistical challenges we have faced,” CEO Peter Rawlinson said in a statement.
As of February 28, Lucid had reservations for more than 25,000 Lucid Air EVs. This is up from 13,000 at the end of the third quarter of 2021. It has produced 400 electric vehicles and delivered 300 electric vehicles, after beginning deliveries in the fourth quarter of 2021.
Shares fell more than 13% in late trading. It rose nearly 10% to 28.98 in the regular session in stock market today. Lucid’s stock has faced strong resistance at the 200-day/40-week moving average since late January. The stock was about 6% below that line on Monday, and is down about 25% since the start of the year.
Lucid’s relative strength line is lagging, according to MarketSmith charts.
In a February 18 note, Morgan Stanley analyst Adam Jonas warned of “high levels of volatility around the stock price” ahead of Lucid’s earnings. Among other things, Lucid stock cited “unusually low free-floating (and) short-selling interest.”
On February 22, the California-based company announced the recall of more than 200 luxury electric sedans due to a potential safety issue. Shares sank nearly 5% that day.
Among US startups, Lucid may be Tesla’s closest competitor, along with Rivian (countryside). In the last quarter of the year, Lucid began initial deliveries of the $169,000 electric Air Dream EV, which topped the longest-range Model S with more than 500 miles of driving range. Lucid Air went on to win accolades, including the 2022 MotorTrend Award for Car of the Year.
The Lucid Air is the only electric vehicle from a startup “in the same league as the Tesla product in terms of range, horsepower and other advantages,” CFRA analyst Garrett Nelson said in November. Rivian also began initial deliveries in the fourth quarter of last year.
As of November, Lucid had 17,000 flight reservations. It also has a war fund of $4.8 billion in cash, thanks to its February 2021 deal to go public through a Special Purpose Acquisition (SPAC) deal with Churchill Capital Corp.
Beyond Lucid Stock: Lordstown, Nicola
Early Monday, Lordstown Motors revealed an extended loss of $81.2 million, or 42 cents a share, for the fourth quarter. FactSet shows that analysts expected a loss of 77 cents.
The startup expects to manufacture and sell its first 500 Endurance electric pickup trucks in the third quarter of this year, with a fivefold increase in 2023 despite parts and supply chain challenges. Chinese company Foxconn will build the $55,000 Endurance electric truck in Ohio.
In contrast to Lucid stock, Lordstown stock is down 20%, less than 3 per share, even as other electric car makers rose Monday. Lordstown Motors stock has never recovered from the March 2021 accusations of fake orders by short seller Hindenburg Research.
On Monday, Lordstown’s management warned of hurdles in the Foxconn manufacturing deal. The production target for the end of 2023 may also have worried investors.
Last week, Nikola also reported more-than-expected losses in the fourth quarter. It also expects to start generating revenue from sales of Tre electric excavators this year. EV Nikola has also not recovered after being targeted by Hindenburg Research in September 2020.
Nikola’s stock closed flat near 8 shares, on Monday.
Blink Earnings Rescheduling
charging flash (BLNK) rescheduled its fourth-quarter earnings release on March 10. Blink stock gained 3%, near 25.
Recent and upcoming reports of new EV stocks provide investors with a broad view of the picture for EV startups, as well-known automakers ramp up electric vehicles amid an ongoing shortage of auto chips.
Lucid and its peers are among the new names following the dominant electric vehicle brand, Tesla (TSLA). But investors are worried after the massive fire in new electric car stocks. “Prototyping is easy, production is hard,” warned Tesla CEO Elon Musk.
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