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Third-quarter 2021 results from NIO Inc. NIO, Workhorse Group WKHS, ElectraMeccanica Vehicles Corp SOLO, Hyliion Holdings HYLN and Lordstown Motors RIDE dominated last week’s key stories in the electric vehicle (EV) space. Each of these companies incurred loss for the quarter under review amid high research & development (R&D) and selling, general & administrative (SG&A) costs. In fact, apart from NIO, the other four companies are not even generating any meaningful revenues yet. Being in the nascent stages of development, the firms’ operating expenses are taking a toll on margins.
Key Takeaways From Q3 Releases
1. NIO reported third-quarter adjusted loss per American Depositary Share of 28 cents, wider than the year-ago loss of 14 cents amid higher operating expenses. The China-based EV maker posted revenues of $1,521.8 million, up a whopping 116.6% year over year on the back of robust deliveries. R&D and SG&A costs were $185.2 million and $283.2 million, reflecting a year-over-year surge of 101.9% and 94.1%, respectively.
NIO delivered 24,439 vehicles in the third quarter of 2021, including 5,418 ES8s, 11,271 ES6s and 7,750 EC6s. Total deliveries skyrocketed 100.2% year over year. The firm expects fourth-quarter 2021 deliveries in the band of 23,500-25,000 vehicles, signaling an uptick in the range of 35.4-46.9%. Revenues are envisioned between $1,455.1 million and $1,568.4 million, indicating a year-over-year jump of 41.2-52.2%.
NIO currently carries a Zacks Rank #4 (Sell). The Zacks Consensus Estimate for 2022 earnings implies a year-over-year improvement of 84.1%
2. Workhorse incurred third-quarter adjusted loss of 77 cents a share, wider than the consensus mark of 19 cents. This Ohio-based firm posted a loss per share of 78 cents in the year-ago quarter. Sales (net of returns and allowances) came in at a negative $600 due to refund liability of around $1.1 million associated with the recall of the firm’s C-1000 vehicles.
SG&A and R&D expenses for the quarter under review totaled $10.6 million and $2.8 million, up from the year-ago period’s $5.9 million and $1.6 million, respectively. As of Sep 30, Workhorse had approximately $230.4 million in cash and cash equivalents.
WKHS currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for 2022 earnings implies a year-over-year improvement of 74.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3. ElectraMeccanica incurred third-quarter loss per share of 11 cents, which matched the consensus mark. This Canada-based EV manufacturer had cash and cash equivalents, and short-term deposits of $228.8 million as of Sep 30, 2021. For the quarter under discussion, the firm’s R&D and G&A costs totaled $5.3 million and $7.4 million, up from $1.5 million and $1.9 million, respectively, in the corresponding period of 2020.
ElectraMeccanica delivered 21 flagship SOLO EVs to reservation holders and fleet customers last month. Since August 2020, the company has manufactured 182 SOLO vehicles. Revenues from initial commercial SOLO deliveries would be recognized in the fourth quarter.
SOLO currently carries a Zacks Rank #4. The Zacks Consensus Estimate for 2022 earnings implies no change year over year.
4. Hyliion recorded third-quarter adjusted loss per share of 15 cents, narrower than the Zacks Consensus Estimate of 24 cents. This Texas-based hybrid truck powertrain maker expects to recognize revenues on Hybrid eX powertrain deliveries starting from the fourth quarter of 2021. R&D and SG&A expenses for the quarter totaled $18.2 million and $8.7 million, significantly higher than $2.9 million and $2.1 million recorded in the year-ago period, respectively.
Hyliion now expects full-year 2021 operating expenses in the band of $110-$120 million, down from the prior guided range of $130-$140 million amid timing delays of truck chassis purchases for development purposes. As of Sep 30, the firm had cash and cash equivalents of $289.5 million.
HYLN currently carries a Zacks Rank #3. The Zacks Consensus Estimate for 2022 earnings implies a year over-year-deterioration of 30%.
5. Lordstown recorded third-quarter adjusted loss of 54 cents a share, narrower than the consensus estimate of 56 cents. SG&A and R&D costs of the firm for the quarter under review totaled $31.3 million and $57 million, flaring up 160% and 90%, respectively, on a year-over-year basis. This Ohio-based provider of electric light-duty trucks exited the quarter with cash and cash equivalents of $233.8 million.
Lordstown expects to commence commercial production and deliveries of the Endurance truck in third-quarter 2022. For full-year 2021, the firm anticipates capex between $330 million and $350 million. Full-year R&D and SG& costs are projected at $320-$340 million and $105-$120 million, respectively.
RIDE currently carries a Zacks Rank of 3. The Zacks Consensus Estimate for 2022 earnings implies a year-over-year improvement of 57.2%
The following table shows the price movement of some of the major EV players over the past week and six-month period.
Image Source: Zacks Investment Research
What’s Next in the Space?
Stay tuned for announcements of upcoming EV models and any important updates from the red-hot industry.
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Workhorse Group, Inc. (WKHS): Free Stock Analysis Report
ElectraMeccanica Vehicles Corp. (SOLO): Free Stock Analysis Report
NIO Inc. (NIO): Free Stock Analysis Report
Hyliion Holdings Corp. (HYLN): Free Stock Analysis Report
Lordstown Motors Corp. (RIDE): Free Stock Analysis Report
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