Lucid Motors (LCID) significantly missed earnings forecasts for the fourth fiscal quarter late Monday and cut production forecasts for 2022. Lucid shares sold out early Tuesday.
On Monday, Lordstown Motors (RIDE) has joined Nicholas (NKLA) in reporting losses less than concerns. But Lordstown was also disappointed with its production prospects.
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Saudi-backed Lucid also announced a plant in Saudi Arabia in a separate issue late Monday. Among US electric car startups, Lucid is generally seen as having more reliable potential Tesla (TSLA) contender because it actually delivers vehicles. Its luxury, highly efficient Lucid Air sets it apart from most other electric cars.
Clear profits
Estimates: Analysts expected Lucid to lose 35 cents a share on revenue of $ 36.7 million. In the third quarter, Lucid reported a loss of 43 cents per share, worse than expected.
Results: Lucid lost 64 cents a share on revenue of $ 26.392 billion.
Outlook: Lucid updated production guide for 2022. Now forecasts 12,000-14,000 vehicles, up from 20,000 earlier.
“This reflects the exceptional supply chain and logistics 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 electric vehicles. That’s up 13,000 at the end of the third quarter of 2021. It produced 400 EVs and delivered 300 EVs after it began shipping in Q4 2021.
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Lucid Stock
Shares of Lucid fell 12% during pre-market trading. Shares jumped nearly 10% to 28.98 on Monday. Shares of Lucid met with strong resistance on their 200-day / 40-week moving average from the end of January. Shares were about 6% below that line on Monday and fell about 25% since the beginning of the year.
The relative strength of LCID shares is lagging behind, according to MarketSmith charts.
In a February 18 note, Morgan Stanley analyst Adam Jonas warned of “high levels of volatility around stock prices” ahead of Lucid’s gains. Among other things, he cites Lucid’s shares as “unusually low free (and) high short interest rates”.
On February 22, the California-based company announced the withdrawal of more than 200 of its premium electric sedans due to a possible safety issue. Shares fell nearly 5% that day.
Among the U.S. car starters, Lucid may be Tesla’s closest rival, along with Rivian (RIVN). In the last quarter, Lucid began initial deliveries of the $ 169,000 Air Dream EV, which topped the longest-running S model with more than 500 miles of driving range. Lucid Air has won awards, including the 2022 MotorTrend Car of the Year Award.
Lucid Air is the only EV from a startup that is “in the same league as Tesla’s product in terms of range, horsepower and other benefits,” CFRA analyst Gareth Nelson said in November. Rivian also began initial deliveries in the fourth quarter of last year.
As of November, Lucid had 17,000 airtime reservations. He also has a $ 4.8 billion military package in cash, thanks to his February 2021 deal to go public through a special purpose vehicle acquisition (SPAC) deal with Churchill Capital Corp IV.
Beyond Lucid Stock: Lordstown, Nicholas
Early Monday, Lordstown Motors revealed an expanded loss of $ 81.2 million, or 42 cents a share, for the fourth quarter. Analysts forecast a loss of 77 cents, according to FactSet.
The startup expects to make and sell its first 500 Endurance electric pickups in the third quarter of this year, a fivefold increase in 2023 despite the challenges of parts and the supply chain. China’s Foxconn will build the $ 55,000 Endurance electric truck in Ohio.
Shares of Lordstown fell nearly 20% to 2.57, even as other electric carmakers rose on Monday. Lordstown Motors shares have never recovered from the March 2021 allegations of fraudulent orders from Hindenburg Research short sellers.
On Monday, Lordstown management warned of obstacles in the production deal with Foxconn. The production target for the end of 2023 may also have scared investors.
Last week, Nicholas also reported better than fears losses for the fourth quarter. It also expects to start generating sales revenue from its Tre electric semi-platforms this year. The electric car startup Nikola also did not recover after being targeted by Hindenburg Research in September 2020.
Shares of Nikola fell early on Tuesday after closing at 7.90 on Monday.
Blink’s earnings have been rescheduled
Charging with flashing (BLNK) rescheduled its fourth-quarter earnings announcement for March 10. The EV charging start is likely to lose 39 cents a share due to low revenue. Shares of Blink rose 3% to 24.58 on Monday. BLNK lost a little early on Tuesday.
Recent and forthcoming reports on new EV stocks give investors a broad view of the picture of start-up electric cars, as established carmakers increase electric vehicles amid a continuing shortage of car chips.
Lucid and his colleagues are among the new names pursuing the dominant brand of electric vehicles, Tesla (TSLA). But investors are wary of the huge fires over new EV stocks. Tesla CEO Elon Musk warned that “prototypes are easy and production is difficult.”
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