Rivian, Lucid's 2024 production targets disappoint as EV demand wanes

$Lucid Group Inc(LCID)$ lost about $377,000 for every vehicle that they delivered in Q4 2023.

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Lucid's annual revenue is $600 million: operating loss is $3.1 billion, 6,001 vehicles delivered

In 2023, Lucid's revenue dropped 2% to $595 million, with an operating loss of $3.1 billion and a net loss of $2.83 billion.

In Q4 2023, revenue was $157 million (down 39%), with an operating loss of $737 million and a net loss of $654 million.

Lucid produced 8,428 vehicles in 2023, meeting its guidance, and delivered 6,001 vehicles, a 37% increase over the previous year.

For 2024, Lucid aims to produce around 9,000 vehicles.

Despite its majority ownership by Saudi Arabia's Public Investment Fund, Lucid struggles to find buyers and loses money on each electric car produced.

Saudi Arabia plans to buy up to 100,000 electric vehicles from Lucid over the next decade.

Lucid began shipping Air sedans to Saudi Arabia in late 2023, but encountered market complexities that slowed the rollout.

As of December 31, 2023, Lucid had $1.37 billion in cash, $2.49 billion in short-term investments, with total assets of $8.5 billion and liabilities of $3.66 billion.

Electric-truck maker Rivian projects no production growth in 2024

$Rivian Automotive, Inc.(RIVN)$ has reported their Q4 earnings results, shares of Rivian slid.

Rivian sport-utility vehicle is seen on display in Austin, Texas

• Rev: $1.35B vs $1.28B est

• Net Q3 loss: $606M (vs $1B in Q4 2022)

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Electric vehicle startups $Rivian Automotive, Inc.(RIVN)$ and $Lucid Group Inc(LCID)$ forecast 2024 production well below analyst estimates on Wednesday as persistently high borrowing costs keep consumers from buying relatively pricier battery-powered cars.

Amazon.com-backed Rivian also said it would cut its workforce by 10%.

Shares in Rivian and Lucid plummeted 15% and 8% respectively after the announcements - the latest signs of a slowdown in EV demand flagged by automakers including $Ford(F)$, $General Motors(GM)$ and market leader $Tesla Motors(TSLA)$ . The plateauing demand sparked a price war last year as companies drained margins to woo customers.