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.

x

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.

x

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.”

YOU MAY ALSO LIKE IT:

Are Tesla shares currently being bought? Here’s what the profits show, the charts

Watch shares: Top rated IPOs, big capital and growth stocks

Find the latest stocks that reach buying areas with MarketSmith

IBD 50 Growth Stocks for Monitoring

See the best promotions to buy and watch

A Russian ruble banknote can be seen in front of the downward stock chart of this illustration, made on March 1, 2022. REUTERS / Dado Ruvic / Illustration

LONDON, March 1 – European stocks fell and oil jumped over $ 100 a barrel on Tuesday as markets battled huge uncertainty caused by Russia’s invasion of Ukraine, although the ruble has stabilized as Moscow fights for support for its besieged markets.

Russia’s stock markets remained stalled and some bond trading platforms no longer showed prices, but trading in major financial centers in both Europe and Asia was tidy overnight, albeit nervous.

Losses for the pan-European STOXX 600 (.STOXX) began to rise again, with the index falling nearly 2% by mid-session, and Wall Street was expected to open about 1% lower in New York later.

There were initially gains on equity (.SXPP) and oil and gas (.SXEP), but even that has worsened and there has been a sharp 4% drop in bank stocks, with investors now feeling that rising interest rates could entertain.

Paul Jackson, global head of asset allocation research, told Invesco: “If we do not accept a quick solution to this conflict, we fear that global GDP could be reduced by 0.5% -1.0%.”

“This is enough to worsen the ongoing slowdown, but it is not enough to cause a recession,” although he warned that some parts of Europe could experience a recession and that inflation is likely to remain higher for longer.

High-level talks between Kyiv and Moscow ended on Monday without an agreement, except to continue talks, and nerves were sharp when a huge Russian armored column descended on Kyiv on Tuesday after deadly shelling of civilian areas in Ukraine’s second-largest city, Kharkiv. Read more

As Russia is one of the world’s largest oil and oil producers, Brent oil futures rose $ 4.51, or 4.6%, to $ 102.75 a barrel. That was just below the seven-year high of $ 105.79 after Moscow launched its attack on Ukraine last week.

Natural gas prices in Europe also jumped by nearly 15%. Oil and gas prices have now risen by nearly 60 percent after fears of an invasion of Ukraine began to escalate in November.

“Ukraine’s fragile situation and financial and energy sanctions against Russia will keep the energy crisis and oil well above $ 100 a barrel in the short term and even higher if the conflict escalates further,” said Louise Dixon, senior analyst at Rystad Energy. , writes in a note.

RUBLES

The sense that war and higher energy prices could slow the global economy meant that eurozone bond yields continued to fall in bond markets as traders further cut their interest rates on the European Central Bank’s interest rates this year. .

The reference 10-year yield on US government bonds remained at 1.80% in European trade, more than 2% lower than two weeks ago as the euro resumed its decline in the foreign exchange market.

The boost to eurozone output growth slowed slightly last month, revised PMI data showed on Tuesday, although it is still strong, and companies said supply chain constraints have eased.

“Don’t let the fall in the PMI headline divert attention from what should be seen as a largely positive month for the eurozone manufacturing sector in February,” said Joe Hayes, senior economist at the IHS Markit data compiler.

The Russian ruble seems to have stabilized after falling 30 percent to a record $ 120 after Western countries hit Russia with the largest sanctions ever imposed on such an interconnected global economy.

These measures include excluding leading Russian banks from the international financial network SWIFT and sanctioning its central bank in an attempt to limit Moscow’s ability to allocate its $ 630 billion in foreign reserves.

Russia responded on Tuesday by temporarily preventing foreign investors from selling Russian assets to ensure they make a “considered decision”, Prime Minister Mikhail Mishustin said. The huge Russian sovereign wealth fund will also be forced to act by spending up to 1 trillion rubles ($ 10.3 billion) to buy shares in Russian companies, a source close to the government told Reuters.

However, the sanctions mean that the big global banks are now reluctant to trade with Russian banks and vice versa, which means that there are already two different currency markets for the ruble – one in Russia and one internationally.

Traders in London quoted the ruble between 101 and 105 per dollar, although according to some local market prices it was around 94 per dollar.

More generally, the volatility of the foreign exchange market is the highest since the end of 2020, as measured by the Deutsche Bank Index (.DBCVIX), and the ruble is down by almost 30% from its best levels this year.

“Today the focus will be on whether sanctions / revenge will start to affect Russia’s trade flows and whether (the Russian central bank) will intervene with more measures to support the ruble,” ING FX analysts wrote in a note to customers.

Meanwhile, trading in Russian stocks remains suspended on the Moscow Stock Exchange, and the prices of Russian government and corporate bonds are not shown on some trading platforms. JPMorgan’s widely tracked GBI-EM Global Diversified Index still included ruble-denominated Russian bonds, although Monday’s market crash reduced their so-called index weight.

Foreign investors held $ 20 billion in Russian government debt denominated in dollars and rubles late last year, according to the Russian central bank, while holding shares worth just over $ 85 billion, according to the Moscow Stock Exchange.

“Much of (global) price action is a function of uncertainty.” said Madison Faller of JPmorgan Private Bank.

Additional reports from Suja Rao in London; Edited by Chizu Nomiyama

Our standards: ‘ principles of trust.