What happened
There's a reason why Super Bowl commercials are so popular -- they leave a lasting impression on the audience and are hugely sought after by companies trying to build a consumer base. So when electric vehicles (EVs) splashed across screens on Super Bowl ads this past Sunday, it was bound to ignite investor interest in EV stocks.
That, however, was just one of the reasons why hot EV stocks like Lucid Group (LCID 0.18%), Rivian Automotive (RIVN 2.44%), and Fisker (FSRN -2.80%) surged this week. Here's how much these stocks had rallied at their highest points in trading during the week, according to data provided by S&P Global Market Intelligence:
- Rivian stock: up 21.5%
- Lucid stock: up 16.6%
- Fisker stock: up 19.8%
A lot happened this week, and a lot more is lined up for these EV stocks. Here's all you need to know.
So what
Rivian shares surged as the market took note of disclosures by several famous investors about their stakes in Rivian. Notable names include George Soros and Dan Loeb.
In its latest 13-F filing with the Securities and Exchange Commission this week, Soros' investment fund, Soros Funds Management, revealed an ownership of 19.8 million shares of Rivian worth more than $2 billion as of Dec. 31, 2021. Rivian stock jumped on the news on Monday, and continued to rally higher through the week after Loeb's Third Point also revealed having bought Rivian shares in the fourth quarter. In between, Tudor Investment also disclosed a stake in the EV stock.
For a company that miserably fell short of investor expectations last year, the billionaire investment disclosures gave Rivian stock the breathing space it needed.
Image source: Getty Images.
Investors in Fisker, meanwhile, found even bigger reasons this week to bid the stock higher. Fisker revealed important information about its Ocean SUV last November, including more than 18,600 reservations as of Nov. 2, 2021, and said it expects to start deliveries by November 2022.
This week, Fisker not only reiterated its delivery target but also revealed that Ocean reservations had crossed 30,000 units as of Feb. 14, 2022, which was estimated to generate gross revenue worth $1.7 billion. Fisker said its year-to-date retail reservation pace for Ocean was almost 400% higher than the year-ago period. The company also opened reservations for its second EV, Fisker PEAR, with deliveries expected in 2024.
These updates, especially a visibility into Fisker's potential initial revenue, sent the stock soaring. It didn't matter that Fisker also reported loss from operations worth $471 million for the full-year 2021 versus $130 million in 2020. All investors are betting on now is Fisker's Ocean SUV.
Fisker was also among the first popular EV stocks to report its quarterly earnings this week. Rivian, for example, won't release its numbers until March, while Lucid's fourth-quarter numbers are due Feb. 28. Lucid has a lot at stake with this earnings release as investors expect the electric car maker to reveal two critical figures: deliveries of Lucid Air so far and first revenue.
While the market waits for Lucid's earnings report, investors were reassured about the company's backing from Saudi sovereign wealth fund The Public Investment Fund (PIF). PIF's regulatory filing dated Feb. 14 revealed that Lucid was its largest holding among all the U.S. stocks it owned as of Dec. 31, 2021. PIF is Lucid's largest investor with a nearly 62% stake in the company.
Now what
Lucid, Fisker, and Rivian stocks are all down sharply so far this year, but each has its own catalysts that investors bet on this week as they await a turnaround.
Rivian's upcoming earnings report, for example, is expected to reveal crucial updates about its R1T pickup truck. Lucid's earnings release, on the other hand, is one of the most awaited events among EV enthusiasts right now given the promise Lucid's EV technology has shown so far.
Lucid has several product launches lined up for 2022 and has ambitious expansion plans. Most importantly, Lucid is expected to report its first-ever revenue figure on Feb. 28, and any surprises there could prove to be the turning point for the EV stock that stunned the market in 2021.
