Tuesday’s Ticker: Electric automakers face challenges on many levels

Toronto, Ontario – It’s all about electric cars in this Tuesday’s weekly ticker, as Tesla reports a sharp drop in shipments and Rivian hits an all-time low. Meanwhile, California-based Lucid Motors is facing a similar glum situation.

Tesla’s emissions are declining

For the first time in nearly four years, Tesla has reported a decline in quarterly deliveries. The OEM delivered 386,810 vehicles in Q1 2024, down 8.5 percent versus last year’s Q1 figures.

As a result, Tesla shares fell 5.2 percent following the news, which Reuters reports saw the company lose about $30 billion in market value.

As of Monday at 7 a.m. ET, Tesla shares were trading at $171.05, down 3.55 percent in premarket trading.

Tesla also missed analyst estimates for Q1 2024. The last time Tesla posted similarly disappointing results for investors was Q2 2020, when the pandemic forced a production shutdown.

Reuters also reported that Tesla is “trying to slow down” this year. The EV maker is currently considered the world’s most valuable automaker.

Rivian hits a new low

Rivian’s shares fell further last week, which some analysts suggest is a reaction to Ford’s EV incentive announcements.

Ford slashed prices on the 2024 F-150 Lightning electric SUV last week, which could save customers up to $5,500 on EV purchases. When internal incentives are taken into account, the price can be much lower.

Rivian stock closed at US$9.20 per share last Thursday, then fell to US$9.13 on Friday. As of Monday morning at 7 am ET, the stock was still trading at US$9.13 per share.

The EV company’s market valuation is US$8.92 billion, marking a 93 percent drop from Rivian’s IPO on the New York Stock Exchange in 2021.

Cons of Lucid

In common with other EV manufacturers, Lucid Motors has hit a record low, despite the fact that the automaker reported Q1 2024 delivery estimates that exceeded analyst expectations.

As of 7am ET Monday, Lucid shares were trading at just $2.49.

The Newark, California-based company has continued to suffer from the ongoing EV “price war,” according to analysts, which has seen EV makers cut prices across the board in an effort to gain sales.

Regardless of the current market, Lucid was eager to announce a $1 billion investment from Saudi Arabia’s Public Investment Fund, the country’s sovereign wealth fund, about a month ago.

The carmaker made history last year when it opened the first-ever car repair facility in Saudi Arabia.