StocksRunner logo
 
 
 
 
»
 

Why are Lucid and Rivian Stocks Plummeting Despite Strong Earnings?

 
  •  David.Mitchell
  •  
    David.Mitchell  David.Mitchell
     
      
     
     
     

    David Mitchell is a seasoned professional with over two decades of experience in the world of finance and investment. With a strong passion for the biotech industry and a keen eye for market trends, David has established himself as a trusted advisor for investors seeking opportunities in the ever-evolving biotechnology sector.

     
 
 
 

stocks on the run

 
 
 

Rivian Automotive (RIVN) and Lucid Group (LCID) released their third-quarter earnings reports last night, revealing contrasting results that highlight the challenges faced by EV startups in a rapidly evolving market.

 

Rivian: Poised for Growth

 

Rivian, known for its R1T electric truck and R1S electric SUV, surpassed analyst expectations by recording a smaller loss than anticipated. The company also updated its production forecast to 54,000 vehicles, slightly above previous estimates. This positive outlook has been met with favorable analyst sentiment, with 68% of analysts rating RIVN a buy.

 

However, Rivian still faces challenges. The company missed its initial production estimates by about 10% and faces intensifying competition in the mid-size electric van market. Despite these hurdles, Rivian's strong financial performance and favorable analyst sentiment suggest that the company is well-positioned for future growth.

 

Lucid: Facing Production Setbacks

 

Lucid Group, known for its high-end luxury sedan, the Air Dream Edition, reported narrower losses compared to the previous quarter. However, the company's production targets were significantly missed, leading to a cut in its full-year production forecast to 8,000-8,500 vehicles. This significant drop from initial expectations has dampened investor confidence, with only 20% of analysts rating LCID a buy.

 

Lucid's challenges extend beyond production setbacks. The company's high-end positioning in a crowded luxury sedan market raises concerns about its ability to capture a significant market share. Additionally, Lucid's wider losses compared to Rivian suggest that the company may face a longer path to profitability.

 

Navigating the Broader EV Landscape

 

The EV industry is grappling with broader market headwinds. Rising interest rates and economic uncertainty have dampened consumer demand, while Tesla's price reductions and weaker-than-expected sales have further eroded investor sentiment. Traditional automakers are also slowing their investments in EV production, postponing future sales and profit targets.

 

These industry-wide challenges make it even more critical for investors to carefully consider each company's unique strengths and weaknesses. Rivian's higher production numbers and visibility to turn a positive gross profit in 2024 are attractive to investors, while Lucid's production setbacks and wider losses have caused investor confidence to falter.

 

 
 

stocks on the run

 
 
 
unlock
 
 
 

Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.

 
 
 
StocksRunner

Get all the pieces of the puzzle on important data activity before the major news sources break the story and find out what happening right now and what could happen in the future

FIND US ON

StocksRunner on Twitter StocksRunner on YouTube StocksRunner on stocktwits StocksRunner Rss
 

Receive our Daily Alerts

Enter your email to receive daily alerts

 
Our Services

Real-time stock market updates

Expert stock analysis

Investment strategies

Top stock recommendations

Trading signals and opportunities

 
About StocksRunner

Log In

Sign Up

Contact Us

Terms of use

Privacy Policy

 
 

Disclaimer: The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.

Please note that no offer or solicitation to buy or sell securities, securities derivatives of future products of any kind, or any type of trading or invesment advise, recommendation or strategy, is made, given or endorsed by StocksRunner including any of their affiliates ("TS").

This information is provided for illustrative purposes only. You should not rely on any advice and/or information contained in this website and before making any investment decision. we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.

 
 
StocksRunner

StocksRunner

Get the pulse of the market

 
 
 
StocksRunner

Find out what happening right now and get all the pieces of the puzzle on important data activity before the major news sources break the story and see what are the trends

FIND US ON

StocksRunner on Twitter StocksRunner on YouTube StocksRunner on stocktwits StocksRunner Rss

 

Receive our Daily Alerts

Enter your email to receive daily alerts

 
Market trends

In-depth stock analysis

Informed investment decisions

Stock market insights

Stock trading tips

Stocks analysis

Stocks trends

Stocks performance

Stocks analysis

Investment strategies

Stock strategies

Trading strategies

StocksRunner updates

StocksRunner ideas

Financial Reports

 
 

Disclaimer: The Score performance whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. The Readiness Indicators, Sentiment Indicators and total score are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. Active trading is generally not appropriate for someone of limited resources, limited invesment or trading experience, or low-risk tolerance. Your capital may be at risk.

Please note that no offer or solicitation to buy or sell securities, securities derivatives of future products of any kind, or any type of trading or invesment advise, recommendation or strategy, is made, given or endorsed by StocksRunner including any of their affiliates ("TS").

This information is provided for illustrative purposes only. You should not rely on any advice and/or information contained in this website and before making any investment decision. we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.