Lucid Motors significantly missed fiscal fourth-quarter earnings estimates late Monday and slashed 2022 production outlook. Lucid stock sold off hard Tuesday.
On Monday, Lordstown Motors joined Nikola in reporting smaller-than-feared losses. But Lordstown also disappointed with its production outlook.
On Tuesday, General Motors confirmed the sale of its 5% stake in Lordstown Motors during the fourth quarter, after an undisclosed lock-up period. GM suggested its Lordstown investment was a goodwill gesture, to get its former Lordstown factory running again after ending production there in 2019 .
Among U.S. EV startups, Lucid is generally seen as a more credible, potential Tesla challenger because it's actually delivering vehicles. Its luxury, highly efficient Lucid Air sets it apart from most other EVs.
Lucid Earnings
Estimates: Analysts expected Lucid to lose 35 cents a share on revenue of $36.7 million. In Q3, Lucid reported a 43-cents-a-share loss, worse than expected.
Results: Lucid lost 64 cents a share on revenue of $26.392 million, including $21.3 million from initial Lucid Air deliveries.
Outlook: Lucid updated 2022 production guidance. It's now forecasting 12,000-14,000 vehicles, vs. 20,000 earlier.
"This reflects the extraordinary supply chain and logistics challenges we've encountered," CEO Peter Rawlinson said in a release.
As of Feb. 28, Lucid had reservations for more than 25,000 Lucid Air EVs. That's up from 13,000 at the end of Q3 2021. It has produced 400 EVs and delivered 300 EVs, after starting deliveries in Q4 2021.
After Lucid earnings late Feb. 23, CFRA analyst Garrett Nelson called the production guidance "particularly disappointing given the fact the company was expected to produce at a quantity which was considered manageable in light of industry challenges." In November, Nelson had favorably compared the Lucid Air to Tesla EVs.
In a separate release late Monday, Saudi-backed Lucid announced a plant in Saudi Arabia.
Lucid Stock
Lucid stock tumbled 13.7% to 24.99 in Tuesday's stock market trading. Shares spiked nearly 10% the prior session, ahead of results. Lucid stock has met firm resistance at its 200-day/40-week moving average since late January.
LCID stock's relative strength line is lagging, according to MarketSmith charts.
In a note Feb. 18, Morgan Stanley analyst Adam Jonas warned of "high levels of volatility around the share price" ahead of Lucid earnings. He cited Lucid stock's " unusually low free float, high short interest and what we believe to be a steadfast/strategic commitment by its 63% controlling shareholder," a referencd to the Public Investment Fund of The Kingdom of Saudi Arabia.
On Feb. 22, the California-based company announced a recall of more than 200 of its premium electric sedans due to a possible safety issue. Shares sank nearly 5% that day.
Among U.S. EV startups, Lucid may be Tesla's nearest challenger, along with Rivian. Last quarter, Lucid began initial deliveries of the $169,000 Air Dream EV, which topped the longest-range Model S with more than 500 miles in driving range. The Lucid Air went on to win accolades, including MotorTrend's 2022 Car of the Year award.
Rivian, which reports next week, also began initial deliveries in Q4 last year.
Beyond Lucid Stock: Lordstown, Nikola
Early Monday, Lordstown Motors disclosed a widened loss of $81.2 million, or 42 cents a share, for the fourth quarter. Analysts had projected a 77-cent loss, FactSet shows.
The startup expects to make and sell its first 500 Endurance electric pickup trucks in the third quarter of this year, rising to 3,000 by 2023. China's Foxconn will build the $55,000 Endurance truck in Ohio.
Lordstown stock rallied 5% Tuesday, after tumbling nearly 20% to 2.57 the prior session. Shares of Lordstown Motors are yet to recover from March 2021 accusations of fake orders by short seller Hindenburg Research.
On Monday, Lordstown management warned of hurdles in the Foxconn manufacturing deal. The underwhelming production target for the end of 2023 may also have spooked investors.
Last week, Nikola also reported better-than-feared losses for the fourth quarter. It, too, expects to start generating revenue from sales of its Tre electric semi rigs this year. EV startup Nikola, too, hasn't recovered after being targeted by Hindenburg Research in September 2020.
Nikola stock lost 3% Tuesday after closing flat at 7.90 on Monday.
Blink Earnings Rescheduled
Blink Charging rescheduled its fourth-quarter earnings release for March 10. The EV charging startup is likely to lose 39 cents a share on negligible revenue. Blink stock lost 1.1% Tuesday.
Recent and upcoming reports from new EV stocks provide investors a broad view of the EV startups picture, as established automakers ramp up electric vehicles amid a lingering auto chip shortage.
Lucid and its peers are among the new names pursuing the dominant electric-vehicle brand, Tesla. But investors are wary after huge flameouts for new EV stocks. And Tesla CEO Elon Musk has cautioned that "prototypes are easy, and production is hard."
