“Rivian Boosts EV Production Guidance, While Lucid Faces Setback in Q3”
Electric vehicle (EV) manufacturers Rivian and Lucid Motors have both announced updates on their production outlook and financial performance, shedding light on the state of the EV market.
Rivian, known for its high-end electric SUVs and trucks, reported strong revenue growth in the third quarter, prompting an increase in its EV production guidance for the full year. The company plans to produce 54,000 electric vehicles in 2023, expanding its customer base beyond its key partner, Amazon. Additionally, Rivian’s improved earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for 2023 further solidifies its position in the market. Consequently, Rivian’s stock rose by 3.3% in extended trading following the announcement.
On the other hand, Lucid Motors, also recognized for its luxury electric vehicles, experienced a decline in revenue during Q3. As a result, the company lowered its 2023 production outlook to 8,000-8,500 vehicles. This setback contributed to a 4.2% drop in Lucid’s stock during late trading, keeping it near all-time lows.
Both Rivian and Lucid face challenges in their business models, as they continue to burn through cash while producing high-end electric vehicles. However, Rivian’s Q3 report showed a smaller net loss per share than expected, along with revenue slightly surpassing estimates.
The contrasting outcomes of these two EV startups illustrate the execution risks associated with the capital-intensive nature of the electric vehicle industry. While Rivian demonstrates progress and positive market response, Lucid’s setback serves as a reminder of the challenges faced by emerging players in the sector.
In the midst of these developments, Tesla, the trailblazer in the EV market, observed a slight rise in its stock. CEO Elon Musk reportedly plans to introduce a cheaper electric vehicle in Germany, a move that will closely be watched by its startup rivals. Similarly, Tesla has intentions to build another affordable EV in Mexico, although construction has yet to commence.
Overall, the earnings results of Rivian and Lucid, along with Tesla’s evolving strategies, shed light on the current state and future prospects of the electric vehicle industry. These updates provide a glimpse into the successes and challenges faced by emerging EV manufacturers, making it an exciting and dynamic market to observe.
