In a comparison of performance and outlook provided by electric vehicle manufacturers on Tuesday, it became evident that Rivian Automotive Inc. has a more concrete business model than Lucid Group Inc.
On the whole, during its discussion of the third quarter with analysts, Rivian RIVN, -1.15% displayed a strong emphasis on cost-cutting initiatives. Company executives detailed a significant technological upgrade in their factories aimed at reducing manufacturing costs in the future. Additionally, Rivian raised its annual vehicle projections and announced that its exclusivity agreement with Amazon.com Inc. AMZN, -0.74% for delivery vans is no longer in place. This news prompted a 4.5% increase in Rivian's stock price in after-hours trading.
Chief Financial Officer Claire Rauh McDonough informed analysts, "We believe these changes will significantly lower our material costs and position Rivian to achieve a much improved margin profile by the end of 2024."
In contrast, the luxury electric vehicle manufacturer Lucid Group LCID, -7.80% revised its vehicle projections for the current year downward to a range of 8,000 to 8,500, down from the previous estimate of 10,000. Lucid also reported a decline in third-quarter revenue and a wider net loss, resulting in a 4.2% decline in its stock price during after-hours trading.
Lucid explained that its revised forecast took into account the number of vehicles it can deliver for the remainder of the year, many of which are destined for government and retail customers in Saudi Arabia. Lucid recently established a plant in Saudi Arabia, where vehicle kits assembled in Arizona are shipped, assembled, and delivered.
Rivian primarily focuses on electric pickup trucks and vans, with the starting price for its pickups around $73,000. Although the current economic environment presents challenges for selling electric vehicles, Lucid faces an even more daunting task, with its Lucid Air model starting at approximately $100,000.
As a leading independent research provider, TradeAlgo keeps you connected from anywhere.