Rivian (RIVN), Fisker (FSR) stocks: Bad news from Ford

October 16, 2023 01:00 AM PDT | By Invezz

Rivian (RIVN), Fisker (FSR) stocks: Bad news from Ford — Image source: Invezz

Bad news for EVs

There are rising risks that the electric vehicle (EV) market is slowing down even as governments in China, the US, and Europe continue their incentives. One reason for this is that competition has risen sharply in the past few years.

Data published last week showed that EV sales in the US jumped to a record high of 313k in the second quarter. That was a strong increase, representing a 50% jump from the same period in 2022.

KBB, which published the report, pointed to more varieties, higher inventory levels, and downward pricing pressure. At the same time, Tesla has started losing market share as companies like Ford, Hyundai, and Chevrolet gain share.

However, there are signs that the industry is slowing. For one, most companies, including Tesla have announced huge price cuts this year. While these price cuts are meant to boost its market share, they are also signs that demand is softening.

Another sign, which represents bad news for EV companies like Rivian and Fisker, comes from Ford. According to the WSJ, Ford is considering cutting shifts at its F-150 Lightning plant.

A Ford union member was quoted by WSJ saying that sales of its Lightning product had tanked. Ford’s EV sales tumbled by over 45% in the third quarter. As a result, the company has slashed its ambitions of building over 2 million EVs by the end of 2026.

The decision to cut EV output comes at a time when the company is boosting its focus on Internal Combustion Engine (ICE) vehicles that are doing modestly well. The WSJ noted that the firm aims to increase its ICE output.

Implications for Rivian and Fisker

Fisker vs Rivian stocks

Ford actions are bad news for other smaller EV companies like Rivian and Fisker. While Rivian’s deliveries rose in Q3, it means that its business will slow down in the near term.

For one, Rivian operates in a similar business with Ford. Its Rivian R1T truck is one of the closest competitors to Ford’s Lightning. It is also more expensive, meaning that its slowdown could be steeper than Ford. Rivian R1T starts at $79,000 while Ford Lightning starts at $52,000.

Ford’s retreat in EVs also means that Fisker will ultimately see slower growth as it moves from its hyper-fast growth. As I have written before, Fisker aims to build between 20k and 23k vehicles this year. Most of these vehicles will go to fill its backlog, which stood at over 65k vehicles.

It is also worth noting that other EV companies like Nio, Xpeng, and Byrd have also recorded slow growth, pointing to a broader issue in the market.

The post Rivian (RIVN), Fisker (FSR) stocks: Bad news from Ford appeared first on Invezz.

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