Home News Shares of electric car makers plunged on disappointing news

Shares of electric car makers plunged on disappointing news

by SuperiorInvest

Key things

  • Electric vehicle (EV) makers Nikola ( NKLA ), Lordstown ( RIDE ), and Lucid ( LCID ) saw their shares decline on February 23, 2023.
  • All three companies reported revenue results that missed analysts’ estimates.
  • Shares of other EV manufacturers also fell during Thursday’s session.

It was a tough day for electric vehicle (EV) stocks as some of the biggest manufacturers reported news that disappointed investors.

Nikola Corporation (NKLA) significantly missed sales estimates as the heavy-duty electric truck maker delivered fewer than two dozen to dealers in the quarter.

Nikola reported fourth-quarter revenue of $6.56 million, just one-fifth of what analysts had estimated. The company said it built 133 of its Nikola Tre trucks, but delivered only 20 to dealers.

Lordstown Motors (DRIVE), which makes smaller electric trucks, has announced that it has temporarily halted production and customer deliveries of its Endurance pickup truck. The company said it had “experienced performance and quality issues” with some components.

Lordstown is also recalling 19 vehicles to address a specific electrical connection issue that could result in a loss of power while driving.

Lucid Misses Production Forecasts

Lucid Group (LCID) said it expects to produce 10,000 to 14,000 of its luxury sedans this year, significantly fewer than expected. In addition, it said it had reservations for more than 28,000 cars as of Feb. 21, about 6,000 fewer than it forecast in November.

Lucid also reported fourth-quarter revenue of $257.7 million, missing estimates. Bank of America downgraded the stock, citing concerns about short-term demand.

Shares of Nikola Corporation, Lordstown Motors and Lucid Group all fell, and shares of several other EV makers also fell.


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