Tesla Stock Falls 2.9%. Lucid's Results Are Another Example of Slowing EV Demand

Dow Jones05-07

Tesla stock was falling early Tuesday after rising for a third consecutive day on Monday, gaining 2% and closing at $184.76.

Product lineup extension at Tesla looked to be the biggest reason. Over the weekend, Tesla began offering a rear-wheel drive Model Y with a range of 320 miles per charge, starting at about $45,000. Before the change, the only rear-wheel drive Model Y had a per-charge range of 270 miles and started at about $43,000.

Investors on Tuesday will be digesting weak results from electric start-up Lucid. First-quarter sales were $173 million, but about $51 million came from the Saudi government, which owns a majority of Lucid stock. Excluding related-party transactions, sales fell almost 20% year over year.

Tesla stock was down 2.89% in premarket trading at $179.42.

Lucid stock was down 8.5% in premarket trading, while S&P 500 and Nasdaq Composite futures were up 0.1%% and down 0.1%, respectively.

Tesla, of course, dwarfs Lucid. First-quarter sales at Tesla totaled some $21 billion.

Still, Lucid's results are another example of slowing demand for electric vehicles at the higher end of the U.S. car market. The Saudi government paid more than $100,000 per Lucid vehicle purchased. The average revenue generated by a Tesla sale in the first quarter was about $44,000.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Dr Rck
    05-07
    Dr Rck
    Pretty range bound for TSLA, alL waiting to ehear Fed to announce rate cut 'soon' but what if Fed delays to a later time until the inflation rate is achieved lower? It seems to indicate that the Fed is comfortable with unemployment inching higher with inflation going up as well by not doing anything to the rate cut so soon. What then will happen to stocks? They have to drop further so that the inflation target can be achieved. Do you think the cut will be anytime soon? Will find out more in the coming weeks! Meanwhile, hold on the rail!
  • CaseyLKC
    05-07
    CaseyLKC
    Ok
Leave a comment
1