EV startups Rivian and Lucid saw their stocks plummet after the announcement that they will not be ramping up production in 2024, along with the release of their fourth-quarter earnings and revenue reports. Rivian reported a loss of $1.36 in Q4, with sales doubling to $1.31 billion. However, the company expects to produce 57,000 vehicles in 2024, the same as in 2023, and anticipates vehicle deliveries in Q1 2024 to be 10%-15% lower than in Q4 2023. Additionally, Rivian is laying off 10% of its salaried workers. This news led to a more than 17% plunge in Rivian’s stock during premarket action on Thursday. Similarly, Lucid reported a loss of 29 cents in Q4, causing its stock to dive nearly 8% early Thursday.
Combining these announcements, EV investors have reacted strongly in selling off Rivian and Lucid stock, fearing the lack of production ramp-up for 2024 and the reported losses. With Rivian on the trajectory to potentially go bankrupt in six quarters according to Tesla Chief Executive Elon Musk, the future for these two EV startups remains uncertain. Elon Musk’s statement, along with the disappointing earnings reports, have resulted in significant drops in both companies’ stock. As a result, the future production and delivery expectations for Rivian and Lucid, along with their quarterly losses, have led to significant declines in their stock value, causing concern among investors about the long-term success of these startups in the EV market.
