Source: Lucid
American EV start-ups Lucid Group and Fisker Inc. have both lowered their production targets for the full-year 2023 amidst lacklustre first quarter earnings which has seen their respective share prices tumble.
A number of EV start-ups with highly anticipated futures have posted their first quarter 2023 earnings this week, and the news is not great.
Lucid Group
Lucid Group, maker of the Lucid Air, posted quarterly revenue down on expectations. First quarter revenue of $US149.4 million was down substantially on analysts’ average estimate of $US209.9 million.
Lucid’s net loss was also up substantially on the same quarter a year ago, widening to $US779.5 million, well up on the loss of $US604.6 million a year ago.
Production continues apace at the company’s manufacturing facility in Arizona, with 2,314 vehicles produced and 1,406 vehicles delivered to customers during the first quarter.
However, the company has lowered its production target for the full-year 2023, dropping it from in the range of 10,000 to 14,000 to a vague “more than 10,000 vehicles in 2023”.
Lucid also appears to be eating through its cash reserves, with its cash and cash equivalents coming in at only $US900 million, down from $1.74 billion just last quarter. Analysts are also concerned over flagging demand.
Fisker
Similarly, Fisker Inc – despite delivering the first Fisker Ocean SUV this month – announced revenue of only $US198,000, up from $US12,000 in the same quarter a year earlier and only $US306,000 in the previous quarter. This nevertheless falls dramatically short of analyst expectations by several million.
Fisker’s net loss contracted slightly to only $US120.6 million, down from $US170 million in the previous quarter.
The first Fisker Ocean SUV was only delivered earlier this month and has produced only 55 models in total. Following in Lucid’s tyre marks, Fisker is lowering production expectations for the full-year 2023. At the start of the year, Fisker was aiming at producing up to 42,400 units, but has now dropped that to within a range of 32,000 to 36,000 units.
Unlike Lucid, Fisker doesn’t appear to be eating through its cash on hand quite so quickly, but with production only just beginning this is unsurprising.
Share prices
Unsurprisingly, shares for both companies fell – and in fact set loose a ripple effect across its EV start-up peers.
Lucid Group’s shares fell by 9% on the back of the news but have stabilised somewhat to a loss of only 5.6%. Fisker’s share price fell by 12.5% off the back of the news before moving through significant fluctuations before levelling out at a loss of only 7%.
A number of other EV start-ups also saw their prices drop, including Faraday Future (5.7%), Canoo (7%), and Lordstown Motors (8%).
Keyword: EV start-ups Lucid and Fisker lower production targets after lacklustre results