Rivian, Lucid Earnings In Focus Amid Looming Fundamental, Geopolitical Overhangs, Retail Mood Mixed

Rivian Automotive, Inc. ($RIVN) and Lucid Group, Inc. ($LCID) are scheduled to report their respective third-quarter results after the market closes on Thursday.

Expectations are muted as the electric-vehicle industry continues to grapple with lackluster demand and an aggressive pricing environment.

Rivian Q3 Expectations: Irvine, California-based Rivian is expected to report a loss per share of $0.96 and revenue of $991.51 million. This compares to the year-ago loss of $1.19 per share and revenue of $1.34 billion.

For the preceding quarter, the company reported a loss of $1.13 per share and revenue of $1.16 billion.

Third-quarter deliveries reported in early October came in at 10,018 units. The company produced 13,157 EVs during the quarter.

At that time, the company maintained its 2024 annual deliveries guidance of 50,500 to 52,000 units and raised its production guidance to 47,000-49,000 units.

Lucid Q3 Expectations: Newark, California-based Lucid, which is majority owned by Saudi Public Investment Fund, will likely report a loss of $0.31 per share, wider than the loss of $0.28 per share incurred a year ago.

Analysts, on average, expect revenue of $196.23 million, marking 42.39% YoY growth but a 2.17% sequential drop. 

The company produced 1,805 vehicles and delivered 2,781 vehicles in the third quarter. 

Challenging Setup: Rivian and Lucid have not been able to break-even and continue to accumulate huge losses amid an inflationary environment, which has served to push up costs and dent top-line growth. 

Rivian currently sells its R1 lineup of all-electric SUVs and pick-up trucks as well as commercial delivery vans. The company has unveiled its affordable EVs that will be manufactured on its next-generation R2 platform.

Cash-strapped Rivian received a lifeline when German auto giant Volkswagen AG ($VWAGY) said in late-June it will invest an initial $1 billion, with up to an additional $4 billion to come later. The two companies announced a joint venture to create next-gen software-defined vehicle platforms to be used in both companies’ future vehicles.

Lucid’s positioning as a premium manufacturer has hurt the company in an inclement economic environment.  It currently sells four variants of Lucid Air EVs, namely Pure, Touring, Grand Touring and Sapphire. The cheapest Air variant has a starting price of $69,900.

The next vehicle - Gravity SUV, will soon begin to roll out, with the company starting to accept reservations for it on Thursday.

Rivian and Lucid are in for another industry-specific challenge as the Republican party’s policy proposals include deemphasizing green-energy vehicles and removing the tax subsidies granted to them.

Lucid, Rivian Stock

The shares of Rivian and Lucid have bucked the broader market rally seen this year, with the former down about 59% and the latter in the red by 49%.

As of 7:50 am ET, Rivian rallied 1.44% to $9.85 and Lucid jumped 2.82% to $2.19. Both stocks fell sharply on Wednesday after Republican candidate Donald Trump emerged victorious in the presidential election. 

The retail crowd harbor mixed sentiment toward Rivian.

A user on the Stocktwits platform touted Rivian as a "made in US EV play," while another said the market is bracing for a bad report.

Sentiment toward Lucid was not any better with retailers suggesting that the stock could tank if the company is not transparent about Gravity preorders.

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For updates and corrections email newsroom@stocktwits.com 

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