Lucid Group Inc. shares dropped 8.4% in the extended trading session Wednesday, following disappointing fourth-quarter earnings and lowered production guidance for 2024. The EV maker, which rivals Rivian, announced a net loss of $654 million or 29 cents per share, compared with a loss of $473 million or 28 cents per share in the same period last year.

The company’s Q4 revenue also tumbled, hitting $157.2 million, down from the $258 million reported a year ago, falling short of the Wall Street estimates which projected revenue of $180 million. For the year 2024, Lucid offered production guidance for about 9000 vehicles – a forecast far below consensus expectations, triggering further investor concerns.

Rivian also issued lower-than-expected production guidance for 2024, raising concerns regarding the demand for EVs. In a note to investors, Tom Narayan with RBC Securities iterated that while Lucid’s Q4 earnings and 2023 results were generally in line with expectations, its 2024 production guidance fell significantly short of consensus predictions. For perspective, RBC had anticipated Lucid to produce around 9500 vehicles in 2024.

During 2023, Lucid managed to produce 8428 vehicles, at the top end of its projected guidance of 8000 to 8500, aligning closely with FactSet expectations. Over the past year, however, Lucid shares have lost around 63% of their value, contrasting sharply with the S&P 500 index’s gain of approximately 24%.

Source: Lucid’s stock drops 8% as losses mount for the EV startup, lower 2024 guidance.