FREY - Why Rivian Lucid and Freyr Stocks Just Dropped
2024-01-16 13:57:40 ET
Shares of electric vehicle (EV) stocks Rivian Automotive (NASDAQ: RIVN) and Lucid Group (NASDAQ: LCID) are sliding in afternoon trading Tuesday, down 1.1% and 4.2%, respectively, while electric car battery maker Freyr Battery (NYSE: FREY) underperforms them both with a 7.7% loss through 12:50 p.m. ET.
I blame the weather (mostly).
EV stocks are continuing to suffer this week from last week's announcement by Hertz that it will be liquidating 20,000 electric vehicles from its rental fleet. Hertz is essentially putting "for sale" signs on nearly 1% of all electric cars on the road in America today. And dumping that much inventory on the used car market is expected to depress prices for used EVs and new EVs alike, especially as analysts are forecasting that the liquidated inventory will be sold at "hefty discounts."
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Why Rivian, Lucid, and Freyr Stocks Just Dropped