Why Rivian, Tesla, and Lucid Stocks Crashed in June
June wasn't a good month for electric vehicle (EV) stocks. It didn't matter whether it was widely followed start-ups like Rivian Automotive (NASDAQ: RIVN) and Lucid Group (NASDAQ: LCID) or the sector leader Tesla (NASDAQ: TSLA). Rivian shares dropped 18%, Lucid 15%, and Tesla was down 11.2%, according to data provided by S&P Global Market Intelligence.
That's a bad month that only added to an extended slide for these names. In fact, Rivian has dropped a whopping 86% from its peak reached last November, while Lucid and Tesla are off 71% and 46%, respectively, from their highs last fall. Investors may be wondering if these stocks have finally reached a near-term bottom.
The poor June performance stemmed from a culmination of troubling news for the EV companies. Rivian and Lucid already had to cut 2022 production estimates earlier this year due to supply chain disruptions. All three companies have had to raise prices on their vehicles to combat escalating material costs, too. That isn't likely to affect demand in general, but it doesn't help the two start-up companies on their path to profitability if they aren't recouping all of the increased costs.
Source Fool.com
