Stock Groups

Lucid, Nikola, Fisker report as Wall Street eyes production


Lucid Motors CEO Peter Rawlinson poses on the Nasdaq MarketSite as Lucid Motors (Nasdaq: LCID) begins buying and selling on the Nasdaq inventory trade after finishing its enterprise mixture with Churchill Capital Corp IV in New York Metropolis, New York, July 26, 2021.

Andrew Kelly | Reuters

Buyers holding beaten-up electrical automobile shares are bracing for first-quarter earnings studies, which begin in earnest over the following few days.

Yr thus far, the asset group has had a tough trip: The S&P Kensho Electrical Autos Index is down roughly 25% because the starting of 2022, and down 43% from its peak in February of final 12 months. The index tracks electrical automakers like Tesla and Honda in addition to main auto-industry suppliers like Visteon and Lear.

A few of the best-known shares within the sector have fared even worse. They principally declare little to no income, and minimal, if any, manufacturing — and three of them are set to report earnings over the following two days.

First up, Fisker

California-based EV startup Fisker will report after the markets shut Wednesday.

Fisker, based by former Aston Martin chief designer Henrik Fisker, has greater than 40,000 reservations for its upcoming Ocean, a smooth electrical SUV that may begin round $38,000.

Fisker would not have a manufacturing facility of its personal; international auto provider Magna International will construct the Ocean at its contract manufacturing facility in Austria. Manufacturing is anticipated to start out in November.

Final 12 months, Fisker introduced plans for a second vehicle, a lower-cost mannequin code-named “PEAR” that shall be constructed by Taiwanese contract producer Foxconn Technology Group beginning in 2023. And Earlier Wednesday, Fisker introduced a 3rd mannequin, a sports activities automotive referred to as Ronin, deliberate for late 2024.

Analysts will doubtless have questions on what’s shaping as much as be an aggressive model-launch schedule, set earlier than Fisker ships even one automobile.

The corporate’s inventory is down about 37% this 12 months, as of Tuesday’s shut, and is off 64% from its all-time excessive of $28.50 set in February 2021.

Manufacturing plans at Nikola

Electrical heavy-truck maker Nikola Motors will report earlier than the markets open on Thursday.

Nikola, primarily based in Phoenix, might be greatest recognized for the scandals that led to the abrupt departure of founder Trevor Milton in September 2020. Milton is now dealing with federal fees on allegations that he misled investors in regards to the state of Nikola’s expertise – however after paying a settlement to the U.S. authorities, his former firm has moved ahead.

Underneath Milton’s successor, CEO Mark Russell, Nikola has simplified its go-to-market plan, cast some key partnerships, and begun manufacturing of the battery-electric model of its Tre heavy truck. An extended-range model of the Tre, powered by hydrogen gasoline cells, is anticipated subsequent 12 months.

Nikola mentioned Monday it raised about $200 million from a personal sale of convertible notes. Its present money steadiness — regarded as round $1 billion — and anticipated funding wants will doubtless be matters of curiosity throughout its earnings name Thursday morning.

Nikola’s inventory is down about 32% this 12 months via Tuesday, and off 91% from its all-time excessive of $79.73, set in June 2020.

Readability from Lucid

In contrast to Nikola and Fisker, Lucid could have some income to report when it releases its first-quarter outcomes after the markets shut on Thursday. The Arizona-based maker of luxurious EVs began production of its first model, the Air sedan, final fall.

Lucid CEO Peter Rawlinson served as chief engineer on Tesla’s landmark Mannequin S. The Air, a no-compromises luxurious sedan with enormous vary and efficiency, might be regarded as an up to date tackle the concepts that fashioned the Mannequin S.

Evaluations of the Air have been superb – amongst different accolades, the Air was Motor Development’s Automobile of the Yr. However Lucid has struggled to ramp up manufacturing of the Air amid ongoing international supply-chain disruptions. In February, it cut its 2022 production target from 20,000 automobiles to between 12,000 and 14,000.

The standing of Lucid’s manufacturing ramp-up is prone to be a scorching matter on Thursday’s earnings name.

Lucid’s inventory is down about 49% this 12 months via Tuesday, and off 66% from its all-time excessive of $58.05, set in February of 2021.