Tesla Inc.
Tesla Inc. is an American company that has a strong presence in China. Let’s take a closer look at the company’s performance and growth prospects.
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Rivian, an EV manufacturer, reported production of just over 10,000 vehicles for the quarter and 24,300 vehicles for the year. Revenue was 663 million dollars, missing expectations of 717 million. However, earnings beat estimates by narrowing the loss per share. Shares fell 18% due to supply chain issues and inflation-related costs. Production forecasts were adjusted to 50,000 vehicles. The company burned through 6.4 billion dollars in cash flow last year. Rivian plans to roll out its Max pack battery variance and double production.
Lucid vs Rivian: A Tale of Two EV Companies
Introduction:
Lucid and Rivian are two electric vehicle (EV) companies that have recently gone public. Both have reported significant revenue growth, but their financial performance and production capabilities differ. In this article, we’ll compare the two companies and discuss which one is the better investment opportunity.
Revenue and Production:
Lucid’s revenue increased by 22 times to $608 million last year, with 7030 vehicles produced. They expect to nearly double that production to 14,000 vehicles this year. Rivian, on the other hand, missed its production target for 2021, with estimates of only 50,000 vehicles produced, less than half of the expected 121,000.
Reservation and Cancellation:
Lucid had 28,000 reservations as of February, down from 34,000 in September, with only 2000 vehicles delivered. This means 4000 customers cancelled their orders, which may be due to competition from Tesla and Ford. Lucid announced a $7,500 discount on some models, but it may need to cut prices further.
Cost of Goods Sold and Cash Burn:
Lucid’s cost of goods sold climbed 307% to $615 million, more than twice its sales of $257 million. Operating expenses were $390 million. This raises concerns about their profitability and cash burn, which has decreased from $3.9 billion to $1.74 billion since September. The company already announced a $1.5 billion raise, but more funding may be needed next year.
Comparison of Valuations:
Rivian has a lower valuation than Lucid, trading at 10.7 times on a price-to-sales basis, with an enterprise value of 3.8 times. Rivian is also further along in production, with an estimated 50,000 vehicles produced this year. Lucid, on the other hand, expects to produce only 14,000 vehicles.
Conclusion:
While both companies show potential in the EV market, Rivian appears to be the better investment opportunity. Its lower valuation, better production capabilities, and potential for cost optimization and profitability make it a more attractive choice compared to Lucid.
Nio vs. Tesla
Introduction
In the world of electric vehicles, Tesla and Nio are two established players that have gained widespread recognition. In this article, we will compare both companies based on their performance, growth prospects, and valuations.
Nio Inc.
Nio Inc. is a Chinese electric vehicle manufacturer that is targeting the premium market segment in China. Let’s take a closer look at the company’s performance and growth prospects.
Deliveries and Revenue
In the first quarter of 2023, Nio reported a 60% increase in deliveries, with over 40,000 vehicles sold, and a 62% increase in revenue to $2.3 billion.
Battery-as-a-service model
Nio is also working on a battery-as-a-service model that allows customers to swap out their batteries to supplement charging, reducing the purchase price by up to 30%. The company is targeting 3,000 of these swap stations in China by 2025, with another thousand outside the country.
Revenue and Gross Margin
In Q1 of 2023, the company announced revenue of $24.3 billion, up 37% from the previous year, and a gross margin of 24%.
Production Guidance and Other Revenue Drivers
Tesla has given a 2023 production guidance of 1.8 million vehicles, and it has other revenue drivers like the mega pack, which posted revenue up 152% in Q4, along with its developments in self-driving, solar, and eventually an autonomous taxi service.
Valuation
While Nio and Tesla are both established players in the EV market, their valuations are quite different. Let’s compare their valuations.
Nio’s Valuation
Nio is currently trading at just two and a half times its price-to-sales basis.
Tesla’s Valuation
Tesla is trading at 7.9 times its price-to-sales basis.
Conclusion
Both Nio and Tesla are excellent investment opportunities in the EV market. Let’s summarize the key points.
Nio vs. Tesla
Nio is growing rapidly, has a strong presence in China, and is trading at a steep discount to its American counterpart. Tesla, on the other hand, has greater scale, margins, and is better positioned to compete on price.
Investor’s Choice
Ultimately, the choice between the two will depend on an investor’s risk appetite, growth expectations, and valuation preferences.
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