Interest in electric vehicles (EVs) has begun to wane over the past months.
Many Americans in the market for a new vehicle are avoiding EVs. In fact in JD Power’s monthly EV report for May, they found that 21% of new-vehicle shoppers said they were “very unlikely” to consider an EV.
JD Power noted that “many new vehicle shoppers are becoming more adamant about their decision to not consider an EV for their next purchase.”
Not to mention that, according to a new report from the Sierra Club, 66% of car dealerships nationwide do not have any EVs available for sale. And of the 66%, 45% of those dealers said they wouldn’t sell EVs no matter what.
As we learned in the latest earnings reports from four of the big EV makers this week – Fisker, Inc. (FSR), Lucid Group, Inc. (LCID), Nikola Corp. (NKLA) and Rivian Automotive, Inc. (RIVN) – this lack of interest is negatively affecting their profitability.
Given this, in today’s Market 360, let’s take a look at these EV companies’ earnings. Then, I’ll share if my AI-powered stock selection system flagged them as buys or sells before their reports.
Lucid Group, Inc. (LCID)
On Monday, May 8, Lucid reported its first-quarter earnings. For the first quarter, Lucid reported revenue of $149.4 million, compared to revenue of $57.6 million for the first quarter of 2022. However, this missed analysts’ expectations for revenue of $209.9 million. The company also revealed an earnings loss of $0.43 per share, which also missed analysts’ expectations for an earnings loss of $0.38 per share.
For the quarter ending March 31, 2023, Lucid manufactured 2,314 vehicles at its Arizona facility and delivered 1,406 vehicles during the same period. In the company’s earnings press release, Lucid CEO and CTO Peter Rawlinson noted:
We are on track to produce over 10,000 vehicles in 2023, with company-wide initiatives ongoing that will enable Lucid to pivot to higher volumes as market conditions allow… Our mission and optimism are unchanged We are committed to an environmentally sustainable future – designing, building, and delivering the best EVs on the market.
This forecasted vehicle production of over 10,000 vehicles would come in above last year’s total production of 7,180 vehicles.
Fisker, Inc. (FSR)
Fisker announced its first-quarter results on Tuesday, May 9. For the first quarter, Fisker reported an earnings loss of $0.38 per share on revenue of $198,000. This compares to an earnings loss of $0.30 per share and revenue of $12,000 in the same quarter a year ago. Analysts were looking for an earnings loss of $0.30 per share on revenue of $14.4 million. So, Fisker missed estimates on both the top and bottom lines.
For the current quarter, Fisker manufactured 2,314 vehicles at its Arizona facility and delivered 1,406 vehicles during the same period. In its earnings release, the company notes:
Fisker expects to produce 1,400-1,700 vehicles in Q2, provided Fisker’s suppliers and partners can support this volume and ramp; Fisker also revises calendar 2023 production value guidance to 32,000-36,000 vehicles.
This forecasted vehicle production of 32,000-36,000 vehicles is a decrease from the company’s previous expectations for 40,000 vehicles in 2023.
Nikola Corp. (NKLA)
Also on Tuesday, May 9, Nikola released its first-quarter earnings. For the first quarter, it reported revenue of $11.1 million. This missed analysts’ expectations for revenue of $12.5 million but was a 516% year-over-year increase from $1.9 million in the first quarter of 2022. The company also revealed an earnings loss of $0.31 per share, which missed analysts’ expectations for an earnings loss of $0.26 per share. This compares to an earnings per share loss of $0.37 in the first quarter of 2022.
For the quarter ending March 31, 2023, Nikola manufactured 2,314 vehicles at its Arizona facility and delivered 1,406 vehicles during the same period. In the company’s earnings press release, Nikola CEO Michael Lohscheller noted:
Nikola had a very solid quarter, building sales momentum with Class 8 battery electric truck deliveries to customers, and orders for 140 hydrogen fuel cell trucks from customers. We have the right products at the right time, and as we move forward, we will be focusing on the North American market, hydrogen fuel cell trucks, the HYLA hydrogen refueling business, and autonomous technologies.
Now, it is important to note that Nikola said it will temporarily halt manufacturing at its Coolidge factory. It stated:
At the end of May, we plan to pause truck production as we convert the line to accommodate both hydrogen fuel cell and battery electric trucks on the same line and will resume production in July with the first saleable hydrogen fuel cell trucks.
However, this hasn’t changed the company’s expectations for 2023. Nikola is still expecting 375,000-500,000 truck deliveries for full-year 2023.
Rivian Automotive, Inc. (RIVN)
Rivian announced its first-quarter results on Tuesday, May 9. For the first quarter, Rivian reported revenue of $661 million, compared to revenue of $95 million in the first quarter of 2022. This beat analysts’ estimates for revenue of $652.1 million by 16%.
The company also revealed an earnings loss of $1.25 per share. Analysts had expected an earnings loss of $1.59 per share. Rivian wrapped up its first quarter of 2023 with $11.78 billion in cash, cash equivalents and restricted cash.
For the quarter ending March 31, 2023, Rivian manufactured 9,395 vehicles at its facility in Normal, Illinois and delivered 7,946 vehicles during the same period. In the shareholder letter, Rivian noted:
We remain focused on ramping production and implementing core technologies designed to drive cost down and improve the customer offering. Based on our latest understanding of the supply chain environment, we reaffirm the annual guidance provided during our fourth quarter and fiscal year 2022 earnings call of 50,000 total units of production…
This forecasted vehicle production of 50,000 vehicles would be about double last year’s production, but the number is below expectations for 60,000 vehicles.
Hitting the Brakes
Clearly, these EV companies are losing money. And this just adds to the uncertainty that already circles EV makers. So how do you know if they are good buys right now?
Well, that’s where my system comes in. My AI-powered stock selection system can predict a stock’s success OR failure – weeks and even months ahead of time. It is designed to identify the optimal entry and exit points for fast-moving stocks.
As you can see below, Fisker, Lucid and Rivian currently hold D-ratings through my system making them “sells” while Nikola holds an F-rating making it a “strong sell”.
The bottom line: They are all sells right now.
Folks who had followed my AI-powered stock selection system would’ve avoided the 5.9% and 7.13% drops in Lucid and Nikola, respectively. And while Rivian and Fisker climbed higher in the wake of their results, RIVN shares and FSR shares are still down about 30% and 17%, respectively, year-to-date. When you consider the companies’ weak fundamentals, I don’t believe the post-earnings strength is sustainable.
Now, my system can be used for a multitude of stocks. Take the most recent banking crisis for example. Investors were blindsided by the recent bank failures… but my readers and I weren’t.
Truthfully, long before the current banking crisis, my system started waving its hands in the air, warning my readers to stay far away from the worst bank stocks on the market.
In fact, I warned folks to stay away from Silicon Valley Bank, Signature, First Republic, and Credit Suisse months before they collapsed – all thanks to my system.
For the past 40 years I have been fine-tuning, testing and perfecting my system. And my system works no matter if the Fed is raising rates or lowering rates… if we are in a recession or if the economy is booming…
This past Tuesday I decided to host an Emergency Banking Briefing to explain how my system works. During the briefing I shared three things you can do today to make sure your cash is protected from any future bank failures.
Plus, I shared how my system is pointing to an $8.3 trillion market shock as soon as September 20th that could leave millions behind… and why you don’t have to be one of them. If you follow my playbook, you’ll have the chance to double your money over and over again in 2023 as the chaos unfolds.
Editor, Market 360
P.S. On Tuesday night, I went live on camera to reveal the cold hard facts about the recent banking crisis and revealed 3 things you can do to protect your cash from any future bank failures…
I called the collapse of Silicon Valley Bank and First Republic months before they caught millions of Americans off guard.
And now I’m making what could be the biggest call of my career…
There is no time to waste.