U.S. electric automakers saw a decline in share prices Tuesday morning following cuts to production forecasts by Lucid Group Inc (NASDAQ:LCID) and Fisker Inc (NYSE:FSR), with Lucid sliding 9% in early trading.
Fisker shares were last down 5.3% after the company reported quarterly results. The company reported 1Q EPS of ($0.38), $0.08 worse than the analyst estimate of ($0.30). Revenue for the quarter came in at $198 thousand versus the consensus estimate of $6.33 million. The EV maker also announced plans to produce 1,400-1,700 vehicles in Q2, “provided all partners deliver”. Fisker expects to have a steep ramp-up in Q3, and forecasts 32,000-36,000 units produced in 2023, compared with its previous target of 42,400.
The reports added to an already poor start for the industry as Lucid reported quarterly results late Monday that missed analysts' expectations. Lucid also went on to trim 2023 production forecasts. Its shares were down 9.1% in strong early trading volume and on track for their biggest daily percentage drop since Feb. 23.
Even with the bearish news following the industry this week, analysts at Cantor Fitzgerald remain confident in Lucid, with one analyst writing in a note, “We continue to believe that the Lucid's vehicles are able to provide greater battery efficiency, longer battery range, faster charging and more interior space relative to other passenger EVs”.
Cantor Fitzgerald reiterated their Overweight rating on the stock but cut the price target on LCID to $10.00 (from $13.00) amidst lower-than-expected revenues, revised production guidance, persistent negative gross margins, lower-than-anticipated demand and pending liquidity needs.
Among other EV makers, shares of Nikola Corp (NASDAQ:NKLA) were down 9.3% early on after the company reported a wider quarterly loss and said it would pause truck production, while Rivian Automotive Inc (NASDAQ:RIVN), which is due to report quarterly results after the closing bell on Tuesday, was down 3.7% in early trading, but has since rebounded.
Shares of FSR and LCID are down 7.18% and 7.81% respectively, while shares of Tesla Inc (NASDAQ:TSLA) and NKLA are down 2.47% and 13.69% respectively in afternoon trading on Tuesday.
Shares of RIVN have rebounded from their earlier slump and are trading up 0.68% in afternoon trading on Tuesday.