Shares of electrical car makers Rivian and Lucid plummeted Thursday after the businesses reported disappointing outcomes and stagnant manufacturing of their fourth-quarter earnings after the bell Wednesday.

Rivian shares plunged about 25% and Lucid’s inventory sank nearly 17% on Thursday.

Rivian forecast it should make 57,000 autos in 2024, barely lower than the 57,232 autos the corporate produced final yr. Lucid mentioned it expects to make 9,000 autos in 2024, about 7% greater than the 8,428 autos it made in 2023.

Rivian’s income of $1.32 billion for the quarter beat Wall Road estimates, however its web loss per share of $1.36 was worse than anticipated, in keeping with a survey of analysts by LSEG, previously referred to as Refinitiv. The corporate additionally introduced Wednesday it might reduce 10% of its workforce.

“Our enterprise just isn’t resistant to current financial and geopolitical uncertainties, most notably the impression of traditionally excessive rates of interest, which has negatively impacted demand,” Rivian CEO RJ Scaringe mentioned on Wednesday’s earnings name.

Lucid reported lower-than-expected income of $157.2 million for the quarter, and its web lack of 30 cents per share was in step with estimates, in keeping with analysts surveyed by LSEG.

Lucid CEO Peter Rawlinson mentioned the macroeconomic surroundings and better rates of interest additionally affected the corporate. He mentioned the corporate has needed to study to function in new areas, corresponding to Saudi Arabia, with completely different market dynamics.

Although firms have invested billions of {dollars} in EVs, gross sales have grown extra slowly than anticipated. EVs made up 6.9% of gross sales heading into December, or roughly 976,560 items, up 1.7 share factors in contrast with complete gross sales in 2022. 

Rivian and Lucid make up a fraction of EV gross sales in contrast with the trade chief, Tesla. A Cox Automotive evaluation discovered that Rivian accounted for simply over 4% of EV gross sales in 2023, whereas Lucid made up 0.5%. Tesla managed about 55% of the market.

Shares of Rivian have dropped about 40% up to now yr and have fallen 85% from their preliminary public providing worth of $78 a share in November 2021. Lucid’s inventory is down about 70% up to now yr and has dropped greater than 75% from its IPO worth of $14 a share in October 2021.

Rivian and Lucid weren’t the one EV producers Wall Road was watching Thursday.

Electrical truck maker Nikola reported worse-than-expected income and a barely better-than-expected loss per share in its earnings Thursday. The inventory traded about flat Thursday, and has misplaced practically all of its worth because it hit an all-time excessive of $93.99 in June 2020.

— CNBC’s Michael Wayland contributed to this report.