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EV Roundup: Q4 Earnings Snapshots of RIDE, LCID, GOEV & WKHS
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Fourth-quarter 2021 results of Workhorse Group (WKHS - Free Report) , Lucid Group (LCID - Free Report) , Canoo (GOEV - Free Report) and Lordstown Motors dominated last week’s key stories in the electric vehicle (EV) space. Each of these companies incurred loss for the quarter under review amid high research & development (R&D) and selling, general & administrative (SG&A) costs. Being in the nascent stages of development, the firms’ operating expenses are taking a toll on margins. Workhorse was the worst hit as the firm’s revenues came in the negative amid suspension of its flagship C-1000 electric delivery vans, recall and customer refunds.
Meanwhile, Tesla (TSLA - Free Report) also made headlines as it inked a major lithium supply pact with Core Lithium. The pact comes in the face of surging demand for battery metals such as lithium, nickel and cobalt due to a boom in EV sales in a bid to aim for a more sustainable future.
Lordstown incurred fourth-quarter 2021 adjusted loss of 42 cents a share, narrower than the Zacks Consensus Estimate of 81 cents. The bottom line, however, deteriorated from a loss of 37 cents per share posted in the comparable year-ago period. Operating expenses for the quarter under review came in at $84.6 million, shooting up 120% year over year. During fourth-quarter 2021, RIDE spent $30 million in capital expenditure.
Lordstown exited the quarter with a cash balance of $244 million. The company expects to produce and sell as many as 2,500 Endurance pickups in 2023. This year, it expects to sell 500 units. RIDE notified that despite the ongoing supply chain snarls, it targets to commence commercial production and sales of Endurance trucks in third-quarter 2022.
Lucid incurred fourth-quarter 2021 adjusted loss of 37 cents a share, wider than the Zacks Consensus Estimate of 26 cents but narrower than the prior quarter’s loss of 41 cents. For the quarter under discussion, the company registered revenues of around $26 million. Operating expenses totaled $360.6 million, up from 200.8 million in the year-ago quarter. During fourth-quarter 2021, LCID spent $121 million in capital expenditure.
Lucid exited the quarter with a cash balance of $6.2 billion. The company delivered 125 Lucid Air cars in the fourth quarter. As of Feb 28, it had taken over 25,000 customer reservations, reflecting potential sales of more than $2.4 billion. The firm notified that its Arizona manufacturing facility is on track and announced plans to establish a new manufacturing facility in Saudi Arabia. LCID envisions 2022 production of Lucid Air in the band of 12,000-14,000 units.
Canoo incurred fourth-quarter 2021 adjusted loss of 61 cents a share, wider than the Zacks Consensus Estimate of 51 cents but narrower than the prior-year loss of 66 cents. For the quarter under review, the firm incurred operating expenses (R&D and SG&A) of $138.8 million, up from $125.7 million in fourth-quarter 2020. Net cash used in operating activities summed $300.8 million for 2021 compared with $107.1 million in 2020.
As of Dec 31, Canoo had cash and cash equivalents of $224.7 million. The company also announced the opening of an advanced manufacturing facility in Bentonville. For first-quarter 2022, GOEV projects operating expenses in the $95-$115 million range. Capital expenditure is projected in the band of $60-$80 million.
Workhorse incurred fourth-quarter 2021 adjusted loss of $1.13 a share, way wider than the Zacks Consensus Estimate of 14 cents. The bottom line drastically deteriorated from earnings per share of 25 cents in the comparable year-ago period. Sales, net of returns and allowances, came in at a negative $2 million compared to $0.7 million in fourth-quarter 2020. A decline in volume and an increase in vehicle returns and allowances associated with the recall of C-1000 vehicles resulted in the poor performance.
For the quarter under review, operating expenses totaled $18.5 million, skyrocketing from $8.7 million spent in fourth-quarter 2020. Workhorse expects to produce and sell at least 250 vehicles in 2022. It expects to generate revenues of at least $25 million this year. As of Dec 31, 2021, WKHS had $201.6 million in cash and cash equivalents.
Tesla signed a deal with Australia's Core Lithium Ltd. Per the deal, Core Lithium will supply the auto magnate with 110,000 tons of lithium spodumene over four years from its flagship Finniss Project in Australia's Northern Territory. Core Lithium, the operator of the Northern Territory's newest mine, began construction on its lithium mine in October 2021. During the same time frame, it secured the Chinese regulators' nod to supply the raw material used in making EV batteries to Ganfeng Lithium, one of the world's top producers of lithium chemicals.
The first lithium production from the Finniss project is scheduled for fourth-quarter 2022 and supply to Tesla is expected to begin in second-half 2023. The supply deal with Tesla represents about 20-25% of Core Lithium’s expected production over the next four years. TSLA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
The following table shows the price movement of some of the major EV players over the past week and six-month period.
Image Source: Zacks Investment Research
What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.
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EV Roundup: Q4 Earnings Snapshots of RIDE, LCID, GOEV & WKHS
Fourth-quarter 2021 results of Workhorse Group (WKHS - Free Report) , Lucid Group (LCID - Free Report) , Canoo (GOEV - Free Report) and Lordstown Motors dominated last week’s key stories in the electric vehicle (EV) space. Each of these companies incurred loss for the quarter under review amid high research & development (R&D) and selling, general & administrative (SG&A) costs. Being in the nascent stages of development, the firms’ operating expenses are taking a toll on margins. Workhorse was the worst hit as the firm’s revenues came in the negative amid suspension of its flagship C-1000 electric delivery vans, recall and customer refunds.
Meanwhile, Tesla (TSLA - Free Report) also made headlines as it inked a major lithium supply pact with Core Lithium. The pact comes in the face of surging demand for battery metals such as lithium, nickel and cobalt due to a boom in EV sales in a bid to aim for a more sustainable future.
Last week, three major China-based EV startups also unveiled vehicle delivery data for February 2022. More on this here: NIO, XPeng, LI Auto Issue February Delivery Updates
Recap of the Week’s Important News
Lordstown incurred fourth-quarter 2021 adjusted loss of 42 cents a share, narrower than the Zacks Consensus Estimate of 81 cents. The bottom line, however, deteriorated from a loss of 37 cents per share posted in the comparable year-ago period. Operating expenses for the quarter under review came in at $84.6 million, shooting up 120% year over year. During fourth-quarter 2021, RIDE spent $30 million in capital expenditure.
Lordstown exited the quarter with a cash balance of $244 million. The company expects to produce and sell as many as 2,500 Endurance pickups in 2023. This year, it expects to sell 500 units. RIDE notified that despite the ongoing supply chain snarls, it targets to commence commercial production and sales of Endurance trucks in third-quarter 2022.
Lucid incurred fourth-quarter 2021 adjusted loss of 37 cents a share, wider than the Zacks Consensus Estimate of 26 cents but narrower than the prior quarter’s loss of 41 cents. For the quarter under discussion, the company registered revenues of around $26 million. Operating expenses totaled $360.6 million, up from 200.8 million in the year-ago quarter. During fourth-quarter 2021, LCID spent $121 million in capital expenditure.
Lucid exited the quarter with a cash balance of $6.2 billion. The company delivered 125 Lucid Air cars in the fourth quarter. As of Feb 28, it had taken over 25,000 customer reservations, reflecting potential sales of more than $2.4 billion. The firm notified that its Arizona manufacturing facility is on track and announced plans to establish a new manufacturing facility in Saudi Arabia. LCID envisions 2022 production of Lucid Air in the band of 12,000-14,000 units.
Canoo incurred fourth-quarter 2021 adjusted loss of 61 cents a share, wider than the Zacks Consensus Estimate of 51 cents but narrower than the prior-year loss of 66 cents. For the quarter under review, the firm incurred operating expenses (R&D and SG&A) of $138.8 million, up from $125.7 million in fourth-quarter 2020. Net cash used in operating activities summed $300.8 million for 2021 compared with $107.1 million in 2020.
As of Dec 31, Canoo had cash and cash equivalents of $224.7 million. The company also announced the opening of an advanced manufacturing facility in Bentonville. For first-quarter 2022, GOEV projects operating expenses in the $95-$115 million range. Capital expenditure is projected in the band of $60-$80 million.
Workhorse incurred fourth-quarter 2021 adjusted loss of $1.13 a share, way wider than the Zacks Consensus Estimate of 14 cents. The bottom line drastically deteriorated from earnings per share of 25 cents in the comparable year-ago period. Sales, net of returns and allowances, came in at a negative $2 million compared to $0.7 million in fourth-quarter 2020. A decline in volume and an increase in vehicle returns and allowances associated with the recall of C-1000 vehicles resulted in the poor performance.
For the quarter under review, operating expenses totaled $18.5 million, skyrocketing from $8.7 million spent in fourth-quarter 2020. Workhorse expects to produce and sell at least 250 vehicles in 2022. It expects to generate revenues of at least $25 million this year. As of Dec 31, 2021, WKHS had $201.6 million in cash and cash equivalents.
Tesla signed a deal with Australia's Core Lithium Ltd. Per the deal, Core Lithium will supply the auto magnate with 110,000 tons of lithium spodumene over four years from its flagship Finniss Project in Australia's Northern Territory. Core Lithium, the operator of the Northern Territory's newest mine, began construction on its lithium mine in October 2021. During the same time frame, it secured the Chinese regulators' nod to supply the raw material used in making EV batteries to Ganfeng Lithium, one of the world's top producers of lithium chemicals.
The first lithium production from the Finniss project is scheduled for fourth-quarter 2022 and supply to Tesla is expected to begin in second-half 2023. The supply deal with Tesla represents about 20-25% of Core Lithium’s expected production over the next four years. TSLA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price Performance
The following table shows the price movement of some of the major EV players over the past week and six-month period.
Image Source: Zacks Investment Research
What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.