Rivian raised EV production guidance for the full year late Tuesday after revenue surged more than expected in the third quarter. But Rivian stock fell Wednesday as Wall Street looked ahead to 2024.
Lucid lowered its 2023 production outlook late Tuesday after a far worse-than-feared Q3 revenue decline. Lucid stock plunged to lows.
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, warned on slowing demand.
Rivian Earnings
Estimates: Analysts, on average, expected the maker of premium electric vehicles to narrow its 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 also said Tuesday that it will allow more customers to purchase its commercial electric vans, beyond Amazon, which remains a key customer.
Rivian previously reported producing 16,304 electric vehicles and delivering 15,564 in the third quarter. It makes the R1S SUV and R1T truck, besides the commercial delivery van. The average selling price is $85,000.
Rivian Stock
Shares of Rivian shed 2.4% to 17 on the stock market today. Rivian stock met resistance at the 200-day moving average intraday after losing more than a third of its value in October, the MarketSmith chart shows.
After Rivian's "strong execution," investors should expect larger downtime pressure next year, analysts at Deutsche Bank said in a note to clients Wednesday.
As the EV startup scales up volumes, it was "was very open this will require multi weeks of plant shutdowns in Q2 and Q3 of next year, along with a rather elongated ramp in Q4," the analysts said. The firm cut its 2024 delivery expectations to 65,000, from 85,000 previously.
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 previously 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 sank 8.1% to 3.95 Wednesday. Lucid stock hit an all-time low intraday.
After soaring on their debut, several EV startups, including Lucid and Fisker, 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 stock dived nearly 9% Wednesday. The EV startup delayed its earnings report to Nov. 13.
