The tide has turned against fast-growing tech stocks in general, and electric vehicle (EV) stocks in particular. The stocks of Lucid Group (LCID 7.01%) and Nio (NIO 5.94%) are each down between 20% and 30% since the start of December 2021. And that trend continued today.
As of 1:50 p.m. ET, shares of Lucid and Nio were down 4.7% and 2.2%, respectively. But Israel-based EV start-up Ree Automotive (REE -1.87%) shares were up 6.8% after popping more than 11% in earlier trading.
While shares have been trending down with the tech market recently, Lucid and Nio may be getting affected a bit by Tesla right now. The EV leader reported unexpectedly high production and delivery numbers in the fourth quarter, and investors seem to be acknowledging the hill smaller EV names will have to climb in trying to catch up. But Lucid also is having to address some customer complaints right out of the gate, while Ree is generating some excitement for its shares with a new EV platform displayed at the Las Vegas Consumer Electronics Show (CES).
Shares of Lucid soared in November after the company delivered its first vehicles, but have been lagging ever since. Now there are also some early new owners unhappy that their $169,000 Air Dream Editions have been delivered without some driver-assist features in the DreamDrive software package, according to a Bloomberg report.
Lucid CEO Peter Rawlinson apparently heard the complaints that some features including adaptive cruise control were still missing, and said in a message to Air customers: "We've received questions from many of you around DreamDrive and when additional features (beyond those already active in your Lucid Air) will be available. Many features are in the final stages of testing and are planned to be included in an over-the-air update in January."
While Lucid and Nio investors are facing some of the headwinds associated with early-stage manufacturing as they both grow and attempt to expand globally, Ree Automotive is currently riding a wave of early excitement. Ree provides modular EV platforms, and hopes to benefit as more and more manufacturers build EVs. The company put its new P7 platform on display at the CES, and says it is "based on specifications from one of world's largest delivery companies."
The P7 is being made for delivery van fleets of electric and autonomous vehicles. Investors hope this niche will have a large market, particularly with the autonomous last-mile delivery concept.
While today's jump in the stock may be satisfying for Ree investors, they need only look to Lucid and Nio to remember that these investments are still speculative, and there will be plenty of volatility to come as the sector matures.