Weekly News

Lucid and Rivian Miss Targets

This week, Rivian and Lucid saw their shares experience significant declines following the release of their earnings reports. Rivian’s shares drop by approximately 25%, while Lucid's shares decreased by around 17%. Despite these setbacks, both companies are looking forward with production targets set for the next year, although with significant adjustments downwards. Rivian aims to produce 57,000 vehicles in 2024, about flat from its 2023 output, whereas Lucid anticipates a production increase to 9,000 vehicles. 

Rivian's recent quarter revenue exceeded expectations, yet the company faced a larger than anticipated net loss, prompting a 10% workforce reduction. Rivian’s focus remains on getting gross margin profitable - a target their CEO RJ Scaringe expects to hit this year despite currently losing ~$30K per vehicle.

Similarly, Lucid's revenue fell short of forecasts, with its net loss aligning with analyst predictions. CEO Peter Rawlinson highlighted the hurdles of operating in new markets like Saudi Arabia amidst a tough macroeconomic climate.

With both companies experiencing a high burn rate, they may need to raise additional capital. Saudi’s Public Investment Fund has been Lucid’s largest supporter in the past, and it wouldn’t be surprising to see Amazon continue to support Rivian in the future.

First Jeep EV Hitting the Roads

Jeep is getting electrified with its first ever EV. The Wagoneer S SUV is expected to start production in Q2 and hit the market as early as July. Jeep's CEO Antonio Filosa also hinted at the launch of the electric Wrangler-like Recon by year-end, adding excitement to the brand's upcoming lineup.

With competition from EVs like Rivian's R1S, Jeep's Wagoneer S will have to deliver to win customers. It boasts 600 horsepower, a 0 to 60 mph of 3.5 seconds, and aims for a 400-mile range. This EV will be the first to utilize Stellantis’ new STLA Large platform. The interior sneak peeks reveal a blend of traditional Jeep aesthetics with modern technology, including a panoramic sunroof.

Furthermore, the Recon, inspired by the off-road capabilities of the Jeep Wrangler, will also leverage the STLA Large platform, hinting at impressive power and range capabilities.

Tesla Cybertruck Gets Snow Tracks

The Tesla Cybertruck already looks like a tank but one of the things missing was that it has wheels instead of tracks. That changed thanks to Heavy D Sparks who modified the Cybertruck into something that looks like a snow war machine…

Volvo Decreases Stake in Polestar

Volvo has announced its intention to sell a significant portion of its stake in Polestar. Volvo plans to offload 62.7% of its shares as part of its broader strategic transformation. The sale, proposed by Volvo's board, will see the company retaining an 18% stake in Polestar, with parent company Geely, holding a 78.7% stake, supporting the move. Despite the reduction in ownership, Volvo aims to maintain its influence on Polestar, continuing collaboration in areas such as research and development, manufacturing, and sales.

This strategic realignment includes halting further financial contributions to Polestar, with Geely stepping in to support the EV maker with funding and operational assistance. Volvo's CEO Jim Rowan emphasized Polestar's strong position for growth, backed by Geely's commitment and the introduction of new models like Polestar 3 and Polestar 4. Volvo remains focused on becoming an all-electric automaker by 2030 and the release of its own models.

Polestar is set to expand its portfolio with the launch of the Polestar 4 in Europe and Australia, promising up to 379 miles of range. This expansion and the planned introduction of the Polestar 3 in the US highlight the company's ambitious growth strategy amidst adoption challenges. Polestar's stock is down 25% over the last week.