Lucid Motors (LCID) significantly missed fiscal fourth-quarter earnings estimates late Monday and trimmed production forecasts for 2022. Lucid stock sold sharply on Tuesday.
On Tuesday, General Motors confirmed the sale of its 5% stake in Lordstown Motors during the fourth quarter, after an undisclosed closing period. GM suggested that its investment in Lordstown was a goodwill gesture, to restart its former plant in Lordstown again after ending production there in 2019.
Among the startups in the USA, Lucid is generally viewed as the most credible potential Tesla (TSLA) Challenger because he already delivers vehicles. Lucid Air is luxurious and efficient, which distinguishes it from most other electric 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 of its $26.392 million revenue share, including $21.3 million from initial Lucid Air deliveries.
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. That’s 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.
After Lucid’s earnings late February 23, CFRA analyst Garrett Nelson described the production guidance as “particularly disappointing given the fact that the company was expected to produce in an amount that was considered manageable given industry challenges.” In November, Nelson favorably compared the Lucid Air to Tesla EVs.
In a separate statement late Monday, Saudi-backed Lucid announced a plant in Saudi Arabia.
Lucid stock fell 13.7% to 24.99 on Tuesday stock market trading. Shares were up nearly 10% in the previous session, ahead of results. Lucid’s stock has faced strong resistance at the 200-day/40-week moving average since late January.
LCID stock’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. He cited “unusually low free float, high short interest, and what we believe to be a firm/strategic commitment by the 63% controlling shareholder,” referring to the Public Investment Fund of Saudi Arabia.
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.
Rivian, which is reporting next week, began initial deliveries in the fourth quarter of last year.
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, rising to 3,000 by 2023. The $55,000 endurance truck will be built by Chinese company Foxconn in Ohio.
Lordstown’s stock is up 5% Tuesday, after dropping nearly 20% to 2.57 in the previous session. Shares of Lordstown Motors have yet to recover from the March 2021 accusations of fake orders by short sellers Hindenburg Research.
On Monday, Lordstown’s management warned of hurdles in the Foxconn manufacturing deal. The disappointing 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 lost 3% on Tuesday after closing flat at 7.90 on Monday.
Blink Earnings Rescheduling
charging flash (BLNK) rescheduled its fourth-quarter earnings release on March 10. Blink stock lost 1.1% on Tuesday.
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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