RIVN & LCID: How are these EV stocks performing amid market dip?

March 12, 2022 12:10 AM PST | By Rupam Roy
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  • Rivian Automotive, Inc. (RIVN) has warned investors that it might trim its production by half this year due to supply chain disruptions.
  • Lucid Group, Inc. (LCID) said it is cutting production by as much as 40% due to supply issues and other factors.
  • Lucid expects its production to be between 12,000 and 14,000 vehicles in 2022.

The electric vehicle sector is expected to see steady growth despite supply-side challenges this year. One major reason for that is the government pushing the industry to go all-electric to meet the 2040 climate goals, an urgency that has taken hold.

The clean energy sector, including the electric vehicle industry, plays a critical role in tackling climate change. Hence, it’s no surprise that consumers and businesses are shifting their focus towards clean energy vehicles.

Tesla Inc (TSLA) is one of the leading EV makers. But there are many others, including the traditional automobile companies that produced combustion engine vehicles, joining the EV market. We explore two EV stocks that may be worth exploring for a long-term hold.
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Rivian (RIVN) and Lucid Group (LCID) price and performance

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Rivian Automotive, Inc. (RIVN)
Rivian is an electric vehicle manufacturer and automotive technology company based in Irvine, California. It had drawn attention even before it got listed in the US market. Its IPO was one of the biggest in 2021, valuing over US$100 billion.

But the company has recently warned investors that it may trim its production by half to 25,000 vehicles this year due to supply-chain disruptions. Rivian said that it manufactured 1,410 vehicles so far in 2022. The company has manufactured 2,425 vehicles since it started production.

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The RIVN stock was priced at US$37.24 at 9:15 am ET on March 11, down 9.52% from its previous close of US$41.16. Its stock value plummeted 59.93% YTD.

For the three months ended on December 31, 2021, the company's net loss was US$2.46 billion, or US$4.83 per share. Its revenue was US$54 million.

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Lucid Group, Inc. (LCID)

Lucid Group is an electric vehicle manufacturer founded in 2007. It is based in Newark, California, and is considered one of the leading companies in the EV sector.

The company has been struggling lately due to supply issues. During its fourth-quarter earnings call, the company said that it is cutting production by as much as 40% this year due to supply-chain constraints and higher logistic costs.

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It expects the production to be between 12,000 and 14,000 in 2022. But it also said that it would focus more on the quality that could lead to production cuts.

The shares of LCID traded at US$24.29 at 9:21 am ET on Friday, up 0.33% from its previous close of US$24.21. Its stock value fell 40.85% YTD.

The company's revenue was US$26.39 million in Q4, FY21, while its net and comprehensive loss came in at US$1.04 billion.

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Bottom line:

The industry is bracing for a major upsurge in demand, although supply issues have threatened to slow down growth. The Russia-Ukraine war has elevated the supply and inflation concerns.

However, investors should apply due diligence before investing in the stock market.


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