Electric vehicle majors including Tesla (TSLA), Lucid Motors (LCID), and Rivian (RIVN) were down on Tuesday with Tesla, particularly, reaching a 52-week low resulting in Elon Musk not being the richest person in the world anymore.
TSLA stock has dropped more than 48% in the past year.
Tesla investors have also been concerned about Musk’s attention being diverted by his acquisition of Twitter. However, the Tesla’s CEO seems to believe that his purchase of Twitter could benefit TSLA shareholders over the long term.
Musk tweeted on Tuesday, “I will make sure Tesla shareholders benefit from Twitter long-term.” But Musk didn’t elaborate more on his plans.
Ross Gerber, head of Gerber Kawasaki Wealth Management and a major Tesla investor suggested in a tweet that Tesla’s Board of Directors should probably appoint an interim CEO.
Lucid is not Faring Any Better
The fall in Tesla stock also dragged down Lucid Motors even as the EV company inked an agreement with Panasonic Energy. As a part of this multi-year agreement, Panasonic Energy will supply lithium-ion batteries for Lucid’s luxury electric vehicle, Lucid Air, and its upcoming Gravity SUV.
Production problems have been a consistent problem for Lucid this year and it slashed its vehicle delivery guidance to 6,500 vehicles from around 13,000 vehicles for FY22.
Shares of Lucid have lost more than 80% of their value in the past year.
Rivian Still Down Even After Impressive Q3
Rivian is another stock that continues to struggle even after delivering an impressive Q3.
RIVN stock has fallen more than 78% in the past year.
The start of this year resulted in EV companies battling supply chain constraints that continued for a better part of this year. Rising inflation and higher interest rates have only compounded their woes.
It seems unlikely that EV stocks will recover anytime soon.