Rivian (RIVN) and Lucid (LCID) are set to announce their third-quarter earnings after the stock market closes, following a two-day decline in their stock prices near all-time lows.
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Key factors to watch include the outlook on EV production, deliveries, and pricing strategy.
Reuters reported on Monday that Tesla (TSLA) is planning to manufacture an affordable electric car in Germany.
Rivian Earnings, Rivan EV Deliveries
Estimates: Analysts, on average, expect the premium electric vehicle manufacturer to narrow net losses to $1.34 per share from $1.57 a year ago, with revenue predicted to surge 146% year over year to $1.321 billion.
This would mark the fifth consecutive quarter of smaller year-over-year losses and the second billion-plus revenue quarter for the EV startup.
Analysts anticipate Rivian to deliver 15,000 electric vehicles, with an average selling price of $85,000, including R1S SUV, R1T truck, and a commercial delivery van mainly for Amazon (AMZN).
In August, Rivian increased its full-year production guidance to 52,000 electric vehicles.
Results: Check back after the market close.
Rivian Stock
Rivian’s shares slightly declined to 17.06 on Tuesday and continue to trade under the 50-day and 200-day moving averages, following a more than 30% drop in October, indicating fears of a global EV slowdown.
Lucid Earnings, Lucid EV Deliveries
Estimates: Analysts, on average, expect the luxury Air electric sedan manufacturer to reduce net losses to 36 cents per share from 40 cents a year ago, with revenue predicted to decrease 5% year over year to $185.1 million.
Despite price cuts, Lucid is experiencing a slump in sales and is reportedly losing money on every EV it produces, with projections of 2,000 Lucid EV deliveries at an average selling price of $100,000.
Results: Check back after the market close.
Lucid Stock
Lucid’s shares dropped 2.4% to 4.21 on Wednesday and continue to linger below crucial moving averages.
Following a strong debut, EV startups like Lucid and Fisker (FSR) are now trading as penny stocks, highlighting the execution risk for young companies in the capital-intensive EV industry.
Fisker is set to report Q3 earnings on Wednesday.
Tesla Stock
Tesla’s stock experienced a slight decline below its 200-day line on Tuesday.
Sources revealed on Monday that CEO Elon Musk proposed plans to manufacture a 25,000-euro ($26,838) electric vehicle in Germany, potentially straining high-end EV startups, especially with the ongoing EV slowdown in the U.S. and Europe.
Tesla also has plans for a cheaper next-generation EV at a future Mexico plant, but construction has yet to commence. A Mexico plant could benefit from low wages and U.S. IRA tax credits, while a cheap EV at the Berlin factory wouldn’t have these advantages.
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