When Tesla (TSLA) slashed prices several times, companies charging high prices needed to compete. Firms like Lucid (LCID) and Fisker (FSR) do not have a cost-production advantage as Tesla does.
The recent results from those firms pale in comparison to Tesla, the EV leader. The EV bubble pop is firmly set to continue.
Fisker does not have any revenue ($0.2 million is negligible). It lost 38 cents a share. Its production target of 1,400 to 1,700 in Q2 will accelerate losses. This loss is required, as the firm increases production to achieve break-even. In Q3, the monthly run rate accelerates to 6,000 units. For 2023, Fisker thinks it can produce 32,000 to 36,000 units.
Lucid, which has bears positioning a 22,37% short interest, is richly valued at a $13 billion market cap. It lost 43 cents a share, despite revenue up 159.1% Y/Y to $149.43 million. Lucid targets a 10,000-vehicle production schedule for 2023. It has enough cash to operate until Q2/2024.
Bears may wait patiently for Lucid to burn through its cash. Bankruptcy risks are rising from here. Brace for potential customers to cancel their vehicle order, citing a drop in disposable income and a weaker economy.
