Electric vehicle makers Rivian and Lucid both suffered plummeting share prices after disappointing fourth-quarter earnings reports revealed stagnant production numbers.
CNBC reports that shares of electric vehicle makers Rivian and Lucid plunged on Thursday following disappointing fourth-quarter earnings reports released after markets closed on Wednesday. Rivian stock sank around 25 percent, while Lucid shares dropped nearly 17 percent.
Both companies cited stagnant production numbers and “existing economic and geopolitical uncertainties” as factors impacting results. Rivian forecasts production of 57,000 vehicles in 2024 — about the same as the 57,232 vehicles manufactured in 2023. Meanwhile, Lucid predicts production of 9,000 vehicles this year, a mere seven percent increase over 2022 levels.
A Lucid Air Grand Touring electric luxury car is displayed at the Lucid Motors Inc. studio and service center on February 25, 2021 in Beverly Hills, California. (Photo by PATRICK T. FALLON/AFP via Getty Images)
In Rivian’s earnings call, CEO RJ Scaringe stated: “Our business is not immune to existing economic and geopolitical uncertainties, most notably the impact of historically high interest rates, which has negatively impacted demand.” Lucid CEO Peter Rawlinson echoed this sentiment, noting rising rates have affected the company.
Rivian’s stagnant production numbers have taken the company and its leadership down a peg. Scaringe laughably claimed in 2023 that buying a gas-powered car in the current market is like “building a horse barn in 1910.”
Rivian reported $1.32 billion in quarterly revenue, surpassing estimates. However, with a loss per share of $1.36, significantly worse than anticipated, investors reacted swiftly. Lucid revenue landed at $157.2 million, below expectations. Its per share net loss of $0.30 aligned with projections.
The electric vehicle market remains small relative to traditional autos. EVs accounted for just 6.9 percent of total US sales last year. Tesla dominates with over 50 percent control of the EV market. Rivian and Lucid make up a fraction of the pie — less than five percent combined.
With Rivian shares down 40 percent over the past year and Lucid losing 70 percent, it’s been a difficult stretch for investors. Both stocks have cratered since public offerings in late 2021, shedding around 80 percent in value. Thursday’s post-earnings plummet only adds to the pain.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.