Following some recent increases in stock value, multiple sources are reporting that Rivian Automotive and other electric vehicle (EV) automakers saw shares rise Thursday “in wild and largely unexplained trading,” as reported. says CNBC.
Rivian Automotive, after the market closed on Wednesday, reported a lower first-quarter loss than Wall Street had expected, and Lordstown Motors announced that a crucial deal to sell its Ohio plant had been reached, according to CNBC. .
The shares were up 15.1% and more than 50%, respectively, on Thursday afternoon. Other increases include: Lucid Group of 11.5%, Nikola Corp. by 5.4%, Fisker by 8.8%, XL Fleet by 11.1%, Mullen Automotive by 7.4%, Hyzon Motors by nearly 11%, and Solid Power battery starting by nearly 9%.
CNBC reports that all EV stocks are trading “well below their 2021 highs,” with the Nasdaq Composite Index still about 30% off its all-time high.
Shares of Tesla were down nearly 3% on Thursday while those of Ford were down 4.4% and General Motors were down 5.7%. CNBC attributes the declines in Ford and GM shares to Wells Fargo analyst Colin Langan, who cut the bank’s ratings on both to “underweight” late Wednesday night.
Yahoo Finance noted that Rivian’s stock was down 75% year-to-date on Thursday morning. Comparatively, Tesla stock was down 38% year-to-date as of Thursday afternoon, according to Yahoo Finance.
In its first quarter shareholder letter, Rivian said there were more than 90,000 R1 pre-orders in the United States and Canada, approximately 5,000 vehicles produced since production began (as of May 9), and reaffirmed its 2022 annual production target of 25,000. However, 502 of the 2022 R1Ts were recalled by the OEM on Tuesday because “the Occupant Classification System (OCS) may not deactivate the airbag when a child or a child seat occupies the front passenger seat, according to documents filed with the National Highway Traffic Safety Administration (NHTSA).
Founder, Chairman and CEO RJ Scaringe said on Rivian’s first quarter earnings call on Wednesday that there is now “a clear path to launch R2 in Georgia in 2025 with our current cash flow.” and will switch to lithium iron phosphate (LFP) batteries later this year.
“R2 will also take advantage of many cross-platform technologies that will be integrated into the R1 and RCV platforms, including our single-motor drive unit, which we call Enduro, and our next-generation network architecture and associated ECU family. “, Scaringe mentioned.
The R2 platform will be “a mid-size SUV at a more accessible price point targeting global markets,” according to the shareholder letter.
Chief Financial Officer Claire McDonough added that during the first phase of the R2 line, 200,000 will be produced. The shareholder letter states: “We are now ramping up production and deliveries of our R1T, R1S and EDV 700, and while there have been challenges in ramping up these vehicles with the current supply chain environment sourcing, we couldn’t be more driven by impact. we can deliver.
During Lucid’s first quarter earnings call last week, CEO and CTO Peter Rawlinson said 360 vehicles were delivered, triple the number delivered in the fourth quarter of 2021. .
“In April alone, we delivered over 300 vehicles demonstrating our accelerated production ramp,” he said. “And this progress in growth keeps us well on track for our 12,000 to 14,000 production targets. We are pleased with the demand we are seeing and now have over 30,000 reservations to date. Note that this 30,000 figure does not include the recent deal for up to 100,000 cars with the Saudi government, which is entirely incremental.
CFO Sherry House added: “Despite continued supply chain disruptions, we continue to see tremendous progress across the business.”
Rivian and Ford could both have competition from Volkswagen’s EV SUVs, according to Reuters, which reportedly confirmed that the OEM plans to reintroduce the off-road Scout brand in the United States as an electric pickup truck and SUV. Production is expected to begin in 2026, according to Reuters.
Reuters compared the Scout to Ford’s current line of Bronco and Rivian pickup trucks and SUVs, both in looks and functionality. The Wall Street Journal calls the Scout an “SUV pioneer” and reports that VW hopes to sell up to 250,000 vehicles a year in the United States.
Reuters also reported that VM plans to build 800,000 electric cars globally this year and 1.3 million in 2023.
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