The electric vehicle sector is grappling with a challenging week, marked by unsettling developments for key players in the industry. Lucid Group, following its Q4 2023 results announcement, faces a stark contrast between increased vehicle production and a bleak 2024 outlook, signaling difficulties in finding buyers for its EVs. The company’s projected production of 9,000 vehicles in 2024 is just a fraction of the ambitious 90,000 EVs it had initially forecasted during its public debut. Lucid’s stock (LCID) has tumbled over 8.6% to $3.38 in premarket trading, a significant decline from its all-time high of $52 per share in late 2021.
Rivian Automotive, a formidable competitor, is not immune to the industry’s challenges. Despite delivering 50,000 vehicles in 2023, the company reported a substantial quarterly loss of $1.5 billion. In response to the demanding macroeconomic environment, including high interest rates and geopolitical uncertainty, Rivian announced a workforce reduction, laying off 10% of its salaried employees. The exact number affected among its 16,700 employees remains uncertain. Rivian’s stock (RIVN) is currently down more than 16% in premarket trading, plummeting to $12.88 a share from its previous high of over $129 per share in late 2021.
While Lucid and Rivian face investor skepticism, the impact on electric vehicle industry leader Tesla seems muted, with Tesla shares (TSLA) holding relatively steady in premarket trading at just above $195. The divergent fortunes of these electric vehicle giants raise questions about the industry’s resilience in the face of evolving market dynamics, economic challenges, and buyer hesitancy.