It’s earnings season again, and EV startups are on deck this week. EV startups, including Lucid (LCID), Rivian (RIVN), Fisker (FSR), and Nikola (NKLA), are all set to report Q1 earnings as funding and production come into focus.
Electric vehicle stocks fall on higher interest rates
Electric vehicle sales in the US hit another record in the first quarter of 2023, surpassing 250,000 units, according to recent data from Cox Automotive.
Despite the rising number of vehicles being produced and sold, EV startups are facing another issue this earnings season – dwindling cash reserves.
The EV makers listed above, including Rivian, Lucid, Fisker, and Nikola, went public during the low-interest rate environment following the pandemic. With interest rates near zero and an injection of funds into the US financial system, growth companies such as EV makers saw their valuations soar.
To cool the overheated economy, the Federal Reserve raised interest rates at a historic pace, hiking rates 10 times over the past year and a half.
As a result, many electric vehicle companies, and high-growth businesses in general, have watched their stock prices fall by 85% to 90% or even more, making it harder to access cheap funding through equity raises.
To make matters worse, Tesla slashing prices earlier this year on its most popular models created a ripple effect in the US market as automakers looked to remain competitive, putting pressure on margins.
EV startups’ first-quarter earnings preview
With EV startups set to report first-quarter earnings this week, investors will be looking for signs of financial distress.
First up will be Lucid reporting earnings on Monday. The EV maker produced 2,314 Lucid Air models, delivering 1,406 during the quarter. Although this represents an increase of 300% YOY, it missed Wall Street expectations of around 2,000 units.
Wall Street is expecting more revenue growth ($210 million), but higher losses and cash burn are expected with higher input costs.
Rivian is set to report Q1 earnings Tuesday after market close. After producing 9,39 vehicles in the first three months of 2023 and delivering 7,946, the EV maker said it remains on track to hit its 50,000 production goal this year.
With production and deliveries falling from the previous quarter, Rivian is expected to see slight revenue growth ($686 million) compared to $663 million in Q4. Losses are also expected to grow from the $1.7 billion posted in Q4.
Fisker and Nikola will also report earnings Tuesday. With Fisker delivering its first Ocean electric SUV model last week, the automaker is expected to see revenue rise in Q1, but it will likely see losses piling on as well.
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Executives from TravelCenters America (TA) and BP were joined by local elected officials at a ribbon cutting for the two companies’ first DC fast charging hub on I-95 in Jacksonville, Florida – the first of several such EV charging stations to come online.
Frequent road-trippers are no doubt familiar with TA’s red, white, and blue logo and probably think of the sites as safe, convenient stops in otherwise unfamiliar surroundings. The company hopes those positive associations will carry over as its customers continue to switch from gas to electric at a record pace in 2025 and beyond.
“Today marks a significant milestone in our journey to bring new forms of energy to our customers as we support their changing mobility needs, while leveraging the best of bp and TA,” explains Debi Boffa, CEO of TravelCenters of America. Boffa, however, was quick to – but TA is quick to point out that TA isn’ no’t leaving its ICE customers behind. “While this is significant, to our loyal customers and guests, rest assured TA will continue to provide the same safe and reliable fueling options it has offered for over 50 years, regardless of the type of fuel.”
The charging hub along the I-95 offers 12 DC fast charging ports offering up to 400kW of power for lickety-quick charging. While they’re at the TA, EV drivers can visit restrooms, shop at TA’s convenience store, or eat at fast food chains like Popeyes and Subway. Other TA centers offer wifi and pet-friendly amenities as well – making them ideal partners for BP as the two companies builds out their charging networks.
“As we expand our EV charging network in the US, I am thrilled to unveil our first of many hubs at TA locations,” offers Sujay Sharma, CEO of BP Pulse Americas. “These sites are strategically located across key highway corridors that provide our customers with en route charging when and where they need it most, while offering convenient amenities, like restaurants and restrooms.”
The new e2500-THL and TS electric Ultra Buggies from Toro offer construction and demo crews a carrying capacity of 2500 lbs. (on the TS model), six-and-a-half foot dump height (on the THL), nearly 13 cubic ft. of capacity, and hours of quiet, fume-free operation.
For their open-mindedness, those crews will be rewarded with machines powered by 7 kWh’s worth of Toro HyperCell lithium-ion battery. That’s good enough for up to eight hours of continuous operation, according to Toro – enough for two typical working shifts.
And, thanks to the Toro Ultra Buggies’ narrow, 31.5″ width, they can easily navigate man doors on inside jobs, as well, making them ideal for indoor demolition and construction jobs. A zero-turn radius and auto-return dump mechanism that ensures the tub automatically returns to the proper resting position make things easy for the operator, too.
Toro says that each of its small (for Toro) e2500 Ultra Buggy units can replace as many as five wheelbarrows on a given job site. Pricing is expected to start at about $32,000.
GM has deployed three of its HYDROTEC hydrogen gensets to the Los Angeles area as a way to help generate power for EV drivers and emergency vehicles recovering from the devastating effects of the recent wildfires.
“GM is extending targeted local support to our customers and employees who have been impacted by the California wildfires,” said Duncan Aldred, vice president global commercial growth strategies and operations. “We’re finding ways to help get people back on the road and using our resources to make a difference in the recovery in the weeks and months to come.”
The mobile charging station rollout is part of a broader response to the fires from GM that includes “planned” philanthropic contributions to nonprofits serving affected communities, employee giving campaigns to benefit the American Red Cross Los Angeles region and the California Fire Foundation, and a complimentary subscription to Crisis Assist Services, which enables customers with OnStar-equipped vehicles to get information about the fires, receive routing guidance, and access immediate emergency assistance from an OnStar advisor.
GM also says it’s providing customers with damaged or destroyed GM vehicles assistance toward the purchase or lease of a new GM vehicle, subject to certain terms and conditions, which may include certain qualifications and restrictions. The company will also help cover collision repair deductible costs for damage to GM vehicles incurred from the wildfires – again, subject to certain qualifications and restrictions.
Electrek’s Take
While it’s certainly commendable for GM to take steps in an effort to support wildfire victims, it feels like a company that made more than $19 billion in gross profits in 2023 (and over $20 billion in 2022; 2024 numbers aren’t out yet – but the company did well enough to spend more than $6 billion buying back its own stock) could have done better than announcing “planned” donations and asking its employees to pony up. By my math, GM shareholders could have given each of the 163,000 global employees the company had in 2023 a $36,000 one-time bonus in lieu of those stock buybacks.
That said, how many companies are doing nothing at all? Good on GM for trying, then – here’s hoping others step up, too.