Shares of several EV makers took it on the chin Tuesday morning. The stocks of Lucid Group (LCID 3.51%) and Nikola (NKLA 7.53%) are trading lower by 6.8% and 4.9%, respectively, as of 12:28 p.m. ET. Shares of lesser-known commercial electric utility vehicle maker Cenntro Electric (CENN -4.38%) are getting hit even harder, down 13%, after it reported its full-year 2021 financial update last night.
With the Nasdaq Composite index plunging nearly 3% today, it shouldn't be overly surprising that these not-yet-profitable EV company shares are getting hit even harder. Neither Lucid nor Nikola announced any market-moving news today. Both companies continue to make progress in the growth of their electric vehicle businesses.
Cenntro, after its stock more than doubled over a two-week span last month, reported its full-year 2021 operating results last night. That big gain in March was spurred by an acquisition that showed its plans to expand in Europe. But investors are now focusing on headwinds, which CEO Peter Wang noted yesterday, stating "2021 operating results were negatively impacted by higher material and shipping costs and shipping container shortages and supply chain disruptions."
Lucid, which will report its first-quarter results on May 5, has been working to ramp up its production as it also highlights what it considers to be its technological advantages. It recently announced the launch of its Air Grand Touring Performance model, which complements its more battery-efficient version.
The Grand Touring sedan offers a sector-leading 516-mile range on a single battery charge. While the performance version has a lower estimated range of 446 miles, its 1,050 horsepower accelerates the car from zero to 60 in just 2.6 seconds.
Nikola is working on a different aspect of EV technology. It has recently started commercial deliveries of its battery electric semitruck, but it is also planning for the rollout of its hydrogen fuel cell electric vehicle (FCEV). To that end, it announced today that it is partnering with Canadian energy company TC Energy to explore building a new hydrogen production hub in Alberta, Canada, where TC operates a natural gas storage facility.
Cenntro's outsize drop today came as it reported a net loss of $16.4 million in 2021, more than triple its loss in 2020. Cenntro produced a total of only 1,623 electric commercial vehicles last year, and investors seem to be reconsidering the validity of the big jump in shares last month.
Overall today, however, the technology growth stock segment of the market is being sold off. That, more than anything specific to these names, is likely what is driving the stock declines.