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Rivian (RIVN) raised EV production guidance for the full year late Tuesday after revenue surged more than expected in the third quarter. Rivian stock rose in extended trading.
But Lucid (LCID) lowered its 2023 production outlook late Tuesday after a far worse-than-feared Q3 revenue decline. Lucid stock tumbled in late trade.
UAW strike appears to be pumping the brakes. The union has reached tentative deals with Detroit Three automakers Ford, General Motors and Stellantis. Next, the UAW may be shifting to organize workers at non-union companies such as Tesla, Toyota and Volkswagen.” vid-name=”Next Up For UAW: Union Eyes Tesla As Strike Against Detroit Three Nears End” vid-cat=”Industry Insights” vid-date=”10/31/2023″ vid-date-tmsp=”1698759355″ vid-image=”https://www.investors.com/wp-content/uploads/2023/10/ZgrY5SnF-640×360.jpg” vid-authors=”MEREDITH HEYMAN”>
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Rivian also said it will allow more customers to purchase its commercial electric vans, beyond Amazon (AMZN), which remains a key customer.
Both Rivian and Lucid make high-end electric vehicles while burning through cash. Fears of a global EV slowdown mounted in October as auto giants, including Tesla (TSLA), warned on slowing demand.
UAW strike appears to be pumping the brakes. The union has reached tentative deals with Detroit Three automakers Ford, General Motors and Stellantis. Next, the UAW may be shifting to organize workers at non-union companies such as Tesla, Toyota and Volkswagen.” vid-name=”Next Up For UAW: Union Eyes Tesla As Strike Against Detroit Three Nears End” vid-cat=”Industry Insights” vid-date=”10/31/2023″ vid-date-tmsp=”1698759355″ vid-image=”https://www.investors.com/wp-content/uploads/2023/10/ZgrY5SnF-640×360.jpg” vid-authors=”MEREDITH HEYMAN”>
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Rivian Earnings
Estimates: Analysts, on average, expected the maker of premium electric vehicles to narrow it net loss to $1.34 per share from $1.57 a year ago, according to FactSet. Revenue was seen surging 146%, year over year, to $1.321 billion.
Results: Rivian lost $1.19 a share, less than feared. Revenue jumped 149% $1.337 million, slightly above views.
That marked the fifth straight quarter of smaller year-over-year losses, FactSet shows. It also marked the second billion-dollar-plus revenue quarter for the EV startup.
Late Tuesday, Rivian raised its 2023 production guidance to 54,000 electric vehicles, up from 52,000 in August. The company tied the hike to “progress experienced on our production lines, the ramp of our in-house motor line, and the supply chain outlook.”
The startup also improved 2023 EBITDA guidance to negative $4 billion, citing cost reduction efforts. It reduced capex spending guidance for the full year to $1.1 billion.
Rivian had already reported producing 16,304 electric vehicles and delivering 15,564 in the third quarter. It makes the R1S SUV and R1T truck, as well as a commercial delivery van whose main customer is Amazon. The average selling price is $85,000.
Rivian Stock
Shares of Rivian gained 3.3% in late trade. They closed up 1.4% to 17.42 on the stock market today, erasing earlier losses. Rivian stock remains stuck under the 50-day and 200-day moving averages after losing more than a third of its value in October, the MarketSmith chart shows.
Lucid Earnings
Estimates: Analysts, on average, expected the maker of the luxury Air brand electric sedan to narrow it net loss to 36 cents per share from 40 cents a year ago, according to FactSet. Revenue was seen falling 5%, year over year, to $185.1 million.
Results: Lucid posted a 28-cent loss, better than feared. Revenue dived nearly 30% $137.8 million, far worse than expected.
The EV startup saw revenue slump after double- and Triple-digit gains in prior quarters. The sales decline came despite cutting prices repeatedly in the wake of Tesla cuts on the Model S and X. It’s also said to be losing hundreds of thousands of dollars on every EV it makes.
Lucid on Tuesday also lowered its 2023 production guidance to 8,000-8,500 vehicles, down from prior guidance of more than 10,000. The company said the move was made to “prudently align” production with deliveries.
Lucid had already reported producing 1,550 electric vehicles and delivering 1,457 in the third quarter. The Lucid EVs sell for around $100,000 on average.
Lucid Stock
Shares of Lucid slid 4.2% in late trade. They closed down 0.5% to 4.30 Tuesday. Lucid stock remains near all-time lows.
After soaring on their debut, several EV startups, including Lucid and Fisker (FSR), now trade as penny stocks, meaning below the $5 price level.
The collapse for many startup EV stocks highlights execution risk for young companies, especially in the capital intensive business of making electric vehicles.
Fisker reports Q3 earnings on Wednesday.
Is Market Rally Due For A Pause?
Tesla Stock
Tesla stock rose 1.3% to 222.18 Tuesday, closing just above its 200-day line.
A source told Reuters Monday that CEO Elon Musk told German factory workers he plans to build a 25,000-euro ($26,838) electric vehicle in the country. The source did not say when production would begin.
Tesla declined to comment for the story, but its mass-market moves will be watched by startup rivals.
While Tesla has plans to build a cheaper, as-yet unveiled next-generation EV at a future Mexico plant, CEO Elon Musk recently signaled a go-slow approach on that site, where construction hasn’t started yet. A Mexico plant would have low wages and could take advantage of U.S. IRA tax credits of up to $7,500. A cheap EV at the Berlin factory would not have those advantages.
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