Lucid Group LCID, Nio NIO, and Rivian Automotive RIVN shares are trading lower in sympathy with EV-competitor Tesla TSLA, which fell after reporting a margin decline.
What Happened: On Wednesday after market closure, Tesla reported its financials for the first quarter of 2023. The company reported a drop in margins, following price cuts throughout the quarter. The operating margin was reported as 11.4% in the first quarter, which represents a margin decline compared to the same period last year (19%) and the fourth-quarter figure (16%).
Tesla reported quarterly sales of $23.33 billion compared to the analyst consensus estimate of $23.21 billion, and quarterly earnings of $0.85 per share falling in-line with analyst estimates. Despite this, the markets reacted negatively to unfavorable margin news Thursday, with Tesla stock seeing an 8.8% decline at the last check.
EV stocks slid today and yesterday as price cuts from Tesla fueled fears of a pricing war, potentially causing industry-wide downward margin pressure.
Price Action: According to data from Benzinga Pro:
- Rivian Automotive shares were down 4.21%, trading at $12.28 at the time of publication
- Lucid Group shares were down 5.65%, trading at $7.19
- Nio shares were down 6.03%, trading at $8.27
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
