EVs Stocks Need A Recharge

A handful of EV stocks handed in their work today… and let’s just say, they probably wish they didn’t. 🤦

Lucid GroupCanoo, and Lordstown Motors all posted their latest quarterly results today, and all three companies trended lower after their reports.

Lucid fell 13.5% in afterhours, erasing its intraday gains and more after lowering its 2022 production target. Instead of delivering roughly 20,000 cars this year, the company now expects between 12,000 and 14,000 vehicles to roll off the supply line. Lucid faulted supply chain woes and logistics for the shortcoming.

Lordstown Motors, which has been embroiled in high-level management resignations and an ongoing DoJ probe, also realized downside after its report today. In a trend you’ll see throughout the EV space, Lordstown reported that it would only produce and sell up to 3,000 vehicles through next year, 500 this year (starting in Q3), and presumably the rest the year after? CNBC wrote about it if you want the deets…

Finally, a lesser-known EV company called Canoo also posted earnings today. The company recorded a wider loss in the quarter, prompting a -7% dip in extended trading today. The company only offered capital expenditures and operating expenses in its projections for the quarter ahead. This time last year, the company had $702 million in current assets. Today, it has $224 million. Oof.

In summary, starting an EV company is hard, and nobody knows that better than this trio of SPAC-turned-EV players. 🤷 Lucid might be better off than the other two, but Lucid is also evidence that this stuff is hard (if you have any qualms about the difficulty, just ask Tesla…)

Speaking of the EV giant, Tesla actually traded up today — but not necessarily at the expense of these names moving south. Rather, the company is expected to receive approval for its Gigafactory in Berlin this week. $TSLA gained +7.4% today.

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