Lordstown Motors Corp (NASDAQ: RIDE) shares were trading higher Tuesday morning after the company announced an expanded partnership with Foxconn. The stock has since reversed course and turned negative for the session as Lordstown's quarterly results come into focus.
Lucid Group Inc (NASDAQ: LCID) is the next EV startup in line to attempt to dazzle investors with its third-quarter results.
What Happened: Lordstown reported a third-quarter net loss of 73 cents per share, which missed average analyst estimates for a loss of 31 cents per share, according to Benzinga Pro. The company ended the quarter with $204 million in cash and short-term investments.
Lordstown also reaffirmed that it plans to start delivering its flagship Endurance vehicle in the fourth quarter.
"Production is expected to increase towards the end of the month as the remaining supplier part pedigree and availability issues are resolved," the company said.
Why It Matters: Lucid is set to report its third-quarter financial results after the bell. Analysts are expecting the luxury EV company to report a net loss of 31 cents per share on quarterly revenue of $209.06 million, according to Benzinga Pro.
Supply constraints could continue to be a common theme among EV startups. In the second quarter, Lucid slashed its full-year 2022 production guidance to a range of 6,000 to 7,000 vehicles, citing "extraordinary supply chain and logistics challenges."
The company only delivered 679 vehicles in the second quarter. At the beginning of October, Lucid provided a preliminary update showing it produced 2,282 vehicles in the third quarter, more than tripling production volumes sequentially. The company said it delivered 1,398 vehicles during the same period.
Investors should be looking for Lucid to affirm that it's on track to reach its full-year production guidance range. Continued strong demand would also be a welcome sign. In the second quarter, Lucid said it had more than 37,000 reservations, representing potential sales of $3.5 billion.
Lastly, investors should pay attention to the company's cash position. It ended the prior quarter with $4.6 billion in cash and equivalents, which Lucid believes is sufficient to fund operations "well into 2023."
LCID Price Action: Lucid has a 52-week high of $47.59 and a 52-week low of $11.87.
The stock was down 1.3% at $13.67 Tuesday afternoon.
Photo: courtesy of Lucid.
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