Lucid, Rivian Shares Are Trading Lower: What's Going On?

Shares of several EV makers including Lucid Group Inc LCID and Rivian Automotive Inc RIVN are trading lower Thursday. The weakness appears to be due to weak quarterly results from EV industry leader Tesla.

What Happened: Tesla missed analyst estimates on both the top and bottom line for the second straight quarter when it reported fourth-quarter results late Wednesday.

Tesla said its earnings and revenue numbers were impacted by lower average selling prices. Operating margins were also down on a year-over-year basis, but up sequentially. The company also provided a weak outlook for 2024 volumes.

“In 2024, our vehicle volume growth rate may be notably lower than the growth rate achieved in 2023, as our teams work on the launch of the next-generation vehicle at Gigafactory Texas,” the company warned.

Tesla’s disappointing earnings results raise questions about the current state of the EV industry. Many of the legacy OEMs have pumped the brakes on electrification efforts due to demand concerns, and Hertz recently announced that it would be slashing one-third of its global EV fleet over the course of 2024.

Both Lucid and Rivian are due to report fourth-quarter financial results in February. Analysts anticipate a loss of 29 cents per share on revenue of $183.081 million for Lucid and a loss of $1.31 per share on revenue of $1.256 billion for Rivian, according to Benzinga Pro.

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LCID, RIVN Price Action: Lucid shares were down 5.32% at $2.67 and Rivian shares were down 2.04% at $15.01, according to Benzinga Pro.

Photos: courtesy of Lucid & Rivian.