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 City, New York, July 26 2021.
Andrew Kelly | Reuters
Investors with beaten up electric vehicle stocks are bracing for the first quarter earnings reports, which kick off in earnest in the coming days.
The year so far has been tough for the asset group: the S&P Kensho Electric Vehicles Index is down about 25% since early 2022 and 43% lower than its February high last year. The index tracks electric car makers such as Tesla and Honda, as well as major auto industry suppliers such as Visteon and Lear.
Some of the industry’s best-known stocks have performed even worse. They usually claim little to no earnings and minimal or no production – and three of them will report earnings over the next two days.
First up, Fisker
Electric Vehicle Startups in California Fisker will report on Wednesday after the markets close.
Founded by former Aston Martin chief designer Henrik Fisker, Fisker has more than 40,000 reservations for its forthcoming Ocean, a sleek electric SUV that will start at around $38,000.
Fisker does not have its own factory; global car 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 codenamed “PEAR,” which will be built by Taiwanese contract manufacturer Foxconn Technology Group beginning in 2023. And earlier Wednesday, Fisker announced a third model, a sports car called Ronin, slated for release in late 2024.
Analysts will likely have questions about what will be an aggressive model launch schedule set before Fisker ships even a single vehicle.
Shares of the company are down about 37% this year, as of Tuesday’s close, and are 64% lower than the all-time high of $28.50 in February 2021.
Production plans at Nikola
Electric Heavy Truck Manufacturer Nikola Motors will report on Thursday before the markets open.
Phoenix-based Nikola is probably best known for the scandals that led to founder Trevor Milton’s abrupt departure in September 2020. Milton now faces federal charges over allegations that he misled investors about the state of Nikola’s technology — but after paying a settlement with the US government, his former company has made headway.
Under Milton’s successor, CEO Mark Russell, Nikola has simplified his go-to-market plan, forged some key partnerships and started production of the battery-electric version of his Tre heavy truck. A longer-range version of the Tre, powered by hydrogen fuel cells, is expected next year.
Nikola said Monday it has raised about $200 million from a private sale of convertible notes. Current cash balance — believed to be around $1 billion — and projected financing needs are likely to matter during Thursday morning’s earnings call.
Nikola’s stock is down about 32% through Tuesday this year and 91% below its all-time high of $79.73, set in June 2020.
Clarity of Lucid
Unlike Nikola and Fisker, Lucid will have some earnings to report when it releases its first quarter results after markets close on Thursday. The Arizona-based luxury EV manufacturer began production of its first model, the Air sedan, last fall.
Lucid’s CEO, Peter Rawlinson, was chief engineer on Tesla’s signature Model S. An uncompromising luxury sedan with massive range and performance, the Air could be seen as an updated take on the ideas that shaped the Model S.
Reviews of the Air were very good – among other accolades, the Air Motor was Trend’s Car of the Year. But Lucid is struggling to ramp up Air production amid ongoing global supply chain disruptions. In February, it lowered its 2022 production target from 20,000 vehicles to between 12,000 and 14,000.
The status of Lucid’s production increase will likely be a hot topic during Thursday’s earnings call.
Shares of Lucid are down about 49% this year through Tuesday, 66% lower than the all-time high of $58.05, set in February 2021.