EV makers are having a bad week

Electrical car makers are having a nasty week. First up is Lucid Group, which announced This fall 2023 outcomes yesterday. Whereas the corporate produced and delivered 37% extra autos in 2023 than it did in 2022, its 2024 outlook was fairly grim information to traders.

Lucid stated its manufacturing steering for 2024 was solely 9,000 autos, suggesting the corporate is struggling to seek out patrons for its EVs. As TechCrunch notes, that’s simply 10% of the 90,000 EVs the corporate predicted when it went public that it might make and promote in 2024.

Shares in Lucid (ticker: LCID) are at present down over 8.6% to $3.38 in premarket buying and selling. That may be a fraction of Lucid’s all-time excessive share worth of over $52 per share in late 2021.

Competitor Rivian Automotive additionally announced its This fall 2023 outcomes. Whereas the corporate delivered 50,000 autos in 2023, it additionally reported a quarterly lack of $1.5 billion. Sadly, Rivian additionally introduced it might lay off 10% of its salaried employees.

Rivan has 16,700 workers but it surely’s unsure what number of of these the corporate considers salaried, notes CNN, so the precise variety of these laid off is just not identified. Saying the layoffs, Rivian CEO RJ Scaringe instructed workers in an e mail that the corporate’s “enterprise is going through a difficult macroeconomic setting — together with traditionally excessive rates of interest and geopolitical uncertainty — and we have to make purposeful adjustments now to make sure our promising future.”

Rivian inventory (ticker: RIVN) is at present buying and selling down greater than 16% in premarket to $12.88 a share. The corporate’s shares had been buying and selling at over $129 per share in late 2021.

Whereas Lucid and Rivian shares are down on the information, traders don’t appear to be worrying an excessive amount of that the businesses’ struggles are a nasty signal for competitor Tesla. As of the time of this writing, Tesla shares (ticker: TSLA) are roughly flat in premarket buying and selling, sitting simply above $195.