A list of EV automakers are reporting earnings this week and will try to prove they can turn hype into production
Lucid Motors CEO Peter Rawlinson poses at the Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) begins trading on the Nasdaq Stock Exchange after completing its business combination with Churchill Capital Corp IV in New York, New York, July 26, 2021.
andrew kelly | Reuters
Investors in battered electric vehicle stocks are bracing for first-quarter earnings reports, which begin in earnest over the next few days.
The asset group has had a tough run, with the S&P Kensho Electric Vehicles Index down 25% since the start of 2022 and down 43% from its peak in February 2021. The index tracks manufacturers electric vehicles such as Tesla and Honda as well as major automotive suppliers such as Visteon and Lear.
Some of the industry’s best-known stocks fared even worse. They mostly claim little to no income and minimal to no production, and three of them are expected to report income in the next two days.
California startup EV Fisker will report after markets close on Wednesday.
Fisker, founded by former Aston Martin chief designer Henrik Fisker, has over 40,000 reservations for its upcoming Ocean, a sleek electric SUV that will start around $38,000.
Fisker does not have its own factory; Global automotive supplier Magna International will build the Ocean at its contract manufacturing facility in Austria. Production is expected to start in November.
Last year, Fisker announced plans for a second vehicle, a lower-cost model named PEAR that will be built by Taiwanese contractor Foxconn Technology Group from 2023. And earlier Wednesday, Fisker announced a third model. , a sports car called Ronin, scheduled for release in late 2024.
Analysts will likely have questions about what’s shaping up to be an aggressive launch schedule, set before Fisker ships even a single vehicle.
Year-to-date, the company’s shares are down about 37% at Tuesday’s close and 64% from their February 2021 high at $28.50.
Production plans at Nikola
Electric truck maker Nikola Motors will report before markets open on Thursday.
Phoenix-based Nikola is probably best known for the scandals that led to the abrupt departure of founder Trevor Milton in September 2020. Milton now faces federal charges over allegations he misled investors about the Nikola’s state of technology – but after paying a deal with the US government, his former company moved forward.
Under Milton’s successor, CEO Mark Russell, Nikola streamlined its go-to-market plan, forged key partnerships and began production of the battery-electric version of its Tre heavy-duty truck. A longer-range version of the Tre, powered by hydrogen fuel cells, is expected next year.
Nikola said Monday he raised about $200 million through a private sale of convertible notes. Its current cash balance — estimated at around $1 billion — and projected funding needs will likely prompt questions during its Thursday morning earnings call.
Nikola’s stock is down about 32% year-to-date through Tuesday, and is down 91% from its high of $79.73, set in June 2020.
Unlike Nikola and Fisker, Lucid will have revenue to report when it releases its first-quarter results after markets close Thursday. The Arizona-based luxury electric vehicle maker began production of its first model, the Air sedan, last fall.
Lucid CEO Peter Rawlinson served as chief engineer on Tesla’s famous Model S. The Air, an uncompromising high-performance luxury sedan with an expansive range, is seen as an updated version of the ideas that shaped the Model S.
Reviews were very good: among other accolades, the Air was Motor Trend’s Car of the Year. But Lucid has struggled to ramp up production amid continued global supply chain disruptions. In February, it cut its 2022 production target from 20,000 vehicles to between 12,000 and 14,000 units.
The status of Lucid’s production ramp-up will likely be a hot topic during Thursday’s earnings call.
Lucid’s stock is down about 49% this year through Tuesday, and is down 66% from its February 2021 high at $58.05.
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