BLOOMINGTON, Illinois – Electric vehicle startup stocks Rivian and Lucid faced a significant downturn early Thursday following the release of their fourth-quarter earnings and revenue. Both companies also announced that production would not be ramping up in 2024, contributing to the decline.
On Wednesday, Rivian reported a loss of $1.36 per share in Q4 and sales doubling to $1.31 billion. This fell just short of Wall Street’s expected loss of $1.35 and revenue totaling $1.28 billion. Looking ahead to 2024, Rivian announced its expectation to produce 57,000 vehicles, which is flat compared to 2023. The company also predicted a 10%-15% decrease in vehicle deliveries in Q1 2024 compared to Q4 2023 and disclosed plans to lay off 10% of its salaried workers.
Meanwhile, Tesla Chief Executive Elon Musk expressed concerns about Rivian’s cash on hand, suggesting that the company could face bankruptcy within six quarters. This statement from Musk contributed to Rivian’s stock plummeting by more than 25% during Thursday’s market action.
Similarly, Lucid reported a Q4 loss of 29 cents per share and a 39% decrease in revenue to $157 million, missing analysts’ predictions. The company produced 8,428 vehicles in 2023 and delivered 6,001. For 2024, Lucid’s forecast to produce 9,000 vehicles fell short of Wall Street’s expectations of over 14,000.
Both Rivian and Lucid stocks experienced noticeable declines on Thursday, emphasizing the challenges ahead for these electric vehicle startups. As the EV market continues to evolve rapidly, companies like Rivian and Lucid will need to address their production and financial challenges to remain competitive.