Lucid Group (NASDAQ:LCID), Nio (NYSE:NIO), and Rivian Automotive (NASDAQ:RIVN) shares are trading lower in sympathy with EV-competitor Tesla (NASDAQ:TSLA), which fell after reporting a margin decline.
What Happened: On Wednesday after market closure, Tesla reported its financials for the first quarter of 2023. The company reported a drop in margins, following price cuts throughout the quarter. The operating margin was reported as 11.4% in the first quarter, which represents a margin decline compared to the same period last year (19%) and the fourth-quarter figure (16%).
Tesla reported quarterly sales of $23.33 billion compared to the analyst consensus estimate of $23.21 billion, and quarterly earnings of $0.85 per share falling in-line with analyst estimates. Despite this, the markets reacted negatively to unfavorable margin news Thursday, with Tesla stock seeing an 8.8% decline at the last check.
EV stocks slid today and yesterday as price cuts from Tesla fueled fears of a pricing war, potentially causing industry-wide downward margin pressure.
Price Action: According to data from Benzinga Pro:
- Rivian Automotive shares were down 4.21%, trading at $12.28 at the time of publication
- Lucid Group shares were down 5.65%, trading at $7.19
- Nio shares were down 6.03%, trading at $8.27
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