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EV stocks shedding their values showcase the actual inside story of what it’s been going through. The electric vehicle (EV) industry is undoubtedly among the steadily growing ones since its inception. And the reasons for it lies within the fundamentals—environmental preservation remains in the core. However, this does not justify if everything’s fine within the industry.
Many prominent names within the electric vehicle market reported losses in their earnings release. Drop in their stock prices reflects the tough phases these companies—including Rivian, Nio, Lucid and Canoo—would be going through. Stock price of EV giant Tesla also tumbled recently. What could it be, coincidence of companies meeting with bad fate at the same time or is it the whole industry?
Rivian (RIVN) EV Stocks Price Drop Reflects Investors’ Disappointment
Recent discussion of burning EV stocks ignited after the plunge in RIVN stock price. Rivian Automotive Inc (NASDAQ: RIVN) released its earnings on the last day of February 2023. The financials were not up to the mark for the fourth quarter of the last year and the whole 2022. The company reported a whopping loss of 1.6 billion USD in Q4, more than previous year’s loss of 1.2 billion USD. However, it was better than the forecasted loss of 1.8 billion USD.
The EV startup company missed its revenue forecast of 742 million USD and reported only 663 million USD for the similar time frame. In the meantime, it also missed to meet the target to deliver 50,000 vehicles this year and was satisfied with around 30,000 for the year.
RIVN stock price took a hard hit following the instance and is currently trading at 15.76 USD after the drop of more than 18% within a day.
Nio (NIO) EV Stock Managed Somehow; Yet Faced Bruising Hit
Nio Inc (NYSE: NIO) is another EV company which recently dropped its earnings report on the first day of March 2023. The company also missed the revenue forecast of 17.78 billion USD and while reporting 16.06 billion USD. Reported earnings per share (EPS) -3.07 USD is also distinct from the forecast of -1.60 USD.
Though the company dropped the expectations of vehicle deliveries, it ended up performing better than the decreased number of vehicles. Earlier Nio dropped its expectations from delivering 43,000-48,000 vehicles to 38,000-39,000 vehicles. Despite the challenges given the supply chain issues, the company ended up delivering 40,052 vehicles last year.
The EV company has an additional advantage given its ‘battery-as-a-service (BaaS)’ feature. It’s outlook includes five new product launches and the setting up of about 1,000 power swap stations this year.
NIO stock price also traded in red at 8.83 USD after a drop of 6%.
Lucid (LCID) Received the Industry Wide Impact
Yet another prominent name within the EV market is Lucid Group Inc. (NASDAQ: LCID) and yet another company facing similar tremors. Although no company specific instance has taken place in the recent days, the stock price likely faced the burns of scorching stock price drops in other counterparts like Rivian and Nio.
At the press time, LCID stock is trading at 8.62 USD, 5.59% down within the last 24 hours.
Canoo (GOEV) EV Stock Needs More Institutional Exposure
Canoo Inc. (NASDAQ: GOEV) falls in the category similar to Lucid, where stock prices tumbled without any specific major reason. The industry-wide sentiments could have hit the company. Meanwhile the company has a majority of retail investors than the institutional investors, which acts as the reason for the stock price’s relatively volatile move. Entry of institutions like Axa S.A. within the company would prevent it from abrupt falls. Recently the French insurance company bought 461.6K shares, worth 865,000 USD, within Canoo.
The stock price tumbled despite the stock buying, continuing its declining streak. It was trading at 0.71 USD, after a drop of 4.69%.
Tesla (TSLA) Stock Drops Despite the ‘Master Plan’
The discussion of the electric vehicle industry could not be ended without mentioning Elon Musk’s Tesla (NASDAQ: TSLA). On Wednesday, March 1, 2023, the company had a presentation of its 2023 Investors Day at Austin, Texas. CEO Musk himself shared the “Master Plan 3” explaining the company’s plan to double down on its scalability amid the fierce competition.
Still TSLA price dropped a bit and traded at 202.77 losing 1.73%. This was said to be majorly because of the company’s short specifics on what investors were looking at, new products or services from Tesla. Rather, the presentation had the company’s long vision and review of previous achievements in the main focus, which might not be arguing for the investors.
Despite recent fall in EV stocks, the industry still holds the potential to dominate in the automobile sector by the end of 2023.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto or stocks comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
