EV Stocks Struggle: Rivian and Lucid Face Major Challenges

EV Stocks Struggle: Rivian and Lucid face significant challenges as they report steep declines in stock prices and rising losses. While Rivian shows signs of effective cost management, Lucid's increasing losses may deter investors. The future remains uncertain for both companies.

Date: 25-01-2025

AI Rating: 5

Stock Performance: Rivian Automotive and Lucid Group have seen their stock prices plummet, with Rivian down 79% and Lucid down 92% over the past three years, indicating significant investor concerns.

Lucid's Financials: Lucid generated $200 million in revenue during the third quarter, yet net losses widened to $992 million compared to $630 million in the previous year. This indicates a substantial decline in profitability. Furthermore, vehicle production has only improved modestly by 16% to 1,805 vehicles.

Rivian's Production and Costs: Rivian made 49,476 vehicles in the last year, marking a decrease of 13.5% from the previous year. However, they managed a slight increase in deliveries by 3%. Importantly, Rivian has reduced material costs by 35%, which could lead to gross profit positivity goals being met in the fourth quarter. They reported significant losses of $1.1 billion in the most recent quarter.

Outlook for Stock Prices: The severe losses for both companies could negatively impact their stock prices. However, Rivian's commitment to cost management and upcoming vehicle models may instill some investor confidence.

Stocks: RIVN LCID