Fisker (FSR) and Lucid (LCID) prepare to report late Wednesday, kicking off a heavy slate of earnings from emerging U.S. EV makers, battery plays and charging companies. NKLA stock jumped Monday with the EV startup’s earnings due early Thursday.
X
On Monday, Nikola (FSR) announced it will acquire Romeo Power (RMO). Automakers have rushed to secure battery supplies for an anticipated flood of electric vehicles, as prices of key battery materials have soared. RMO stock rocketed off extremely low levels.
For these new EV stocks, production targets will be in the spotlight. So will reservation and delivery numbers, as headwinds rise.
IBD Live: A New Tool For Daily Stock Market Analysis
A perfect storm has hit the global auto industry. The challenges span ongoing chip and other supply disruptions to rising inflation and fears of a U.S. and global recession.
That is weighing on auto giants, let alone EV-only startups, such as Fisker, which have yet to deliver a single electric car. But Fisker is approaching the launch of its first vehicle, the luxury Fisker Ocean SUV.
Fisker Earnings, FSR Stock
Estimates: Analysts polled by FactSet expect Fisker to lose 41 cents per share, widening losses from 16 cents a year ago. Fisker is a pre-revenue company.
Results: Check back late Wednesday.
Outlook: For the full year, Wall Street sees Fisker losing $1.64 a share, 3 cents worse than 2021.
Shares of Fisker fell 1.7% to 9.42 in Monday’s stock market action. FSR stock continues to straddle the 50-day moving average but is far below the 200-day line.
In the past year, Fisker stock has lost 60% of its value.
On July 28, Fisker said it is on track to start production of the Fisker Ocean electric SUV in November. Losses have ballooned as it prepares its first EV for production.
Fisker could update investors on ties with contract manufacturing partner Magna (MGA), the EV supply chain and Ocean reservations.
The company reported 45,000 Ocean reservations in May and reportedly topped 50,000 Ocean reservations in June, after hiking prices by 13% that month.
The Fisker Ocean stands out on price-vs.-range specs. The most affordable version starts at under $40,000 with an estimated range of 250 miles, but goes up to $70,000 for 350 miles.
Lucid Earnings, LCID Stock
Estimates: Analysts expect Lucid to sharply narrow losses to 39 cents per share, from $1.17 a year earlier. They see nominal revenue of less than $150 million, up from $57.7 million the prior quarter. There is no year-ago revenue, FactSet shows.
Results: Check back late Wednesday.
Outlook: For the full year, Wall Street sees Lucid losing $1.16 a share, significantly less than a loss of $6.41 in 2021, which covers only three reported quarters.
Lucid stock gained 1.5% to 18.53 Monday, closing just below the 50-day average. LCID stock sits 68% below its 52-week high.
Lucid has begun delivering the Lucid Air Grand Touring, which costs an eye-watering $154,000 for an official EPA-estimated 516 miles of range. A more affordable Pure model will launch in Q4.
On May 6, Lucid reported 30,000 Air EV reservations. But it merely maintained a previously lowered target to produce 12,000-14,000 EVs in 2022.
Lucid warned that same day of “global supply-chain and logistics challenges, including Covid-related factory shutdowns in China.”
Nikola Earnings, NKLA Stock
Nikola reports early Thursday. Check back later for Nikola estimates, results and key milestones to watch.
On Monday, Nikola announced the $144 million acquisition of Romeo Power in an all-stock transaction. Romeo Power designs and manufactures lithium-ion battery modules and packs.
Nikola is Romeo’s largest production customer. “So the transaction vertically integrates operations by bringing battery and BMS engineering capabilities and manufacturing in-house,” RBC Capital Markets Joe Spak wrote in a note Monday.
But Spak expects higher costs tied to the Romeo Power acquisition and higher capital needs at Nikola, “which we already had forecasted at more than $2.8 billion” through 2025.
NKLA stock jumped 7.8% Monday off very low levels to 6.71. Romeo Power stock soared 27% to 70 cents.
Both auto giants and EV-only startups are chasing Tesla (TSLA), the global EV leader. Tesla’s battery expertise and command over the EV supply chain help to explain its edge vs. a growing crush of rivals.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
YOU MAY ALSO LIKE:
These Are The 5 Best Stocks To Buy And Watch Now
Stocks To Watch: Top-Rated IPOs, Big Caps And Growth Stocks
Find The Latest Stocks Hitting Buy Zones With MarketSmith
Why This IBD Tool Simplifies The Search For Top Stocks
Looking For The Next Big Stock Market Winners? Start With These 3 Steps
Source: https://www.investors.com/news/ev-stocks-fisker-lucid-nikola-earnings-nkla-stock-battery-deal/?src=A00220&yptr=yahoo