By Caroline Valetkevitch
NEW YORK (Reuters) – Cuts to production forecasts by Lucid Group Inc and Fisker Inc slammed shares of electric-vehicle makers in early trading on Tuesday, with Lucid down about 9%.
Fisker shares were last down 5.3% after the company reported quarterly results earlier on Tuesday and cut its production forecast for 2023. The stock had fallen as much as 16% early in the session.
That added to the bearish news for the industry from late Monday, when Lucid reported quarterly revenue that missed analysts’ expectations and trimmed its 2023 production forecast.
Its shares were down 9.1% in strong early trading volume and on track for their biggest daily percentage drop since Feb. 23.
EV makers have faced challenges with production following supply-chain issues.
Analysts at Needham, in a note on Lucid on Tuesday, wrote that they continue to see value in the company’s EV technology, but said that “the window for LCID to prove customers will respond to their vehicles is closing given company liquidity constraints.”
The analysts also reiterated their “buy” rating on Lucid, but lowered their price target to $10. The median Wall Street price target on the stock is $10, while it was last at $7.01.
Among other EV makers, shares of Nikola Corp were down 9.3% after the company reported a wider quarterly loss and said it would pause truck production, while Rivian Automotive Inc, which is due to report quarterly results after the closing bell on Tuesday, was down 3.7%.
Shares of Tesla Inc were down about 1% and were among the biggest drags on the benchmark S&P 500 index in early trading.
(Reporting by Caroline Valetkevitch in New York; Editing by Lance Tupper and Matthew Lewis)
