This week, electric vehicle (EV) stocks experienced a significant rise, particularly after Luminar Technologies (NASDAQ: LAZR) disclosed its earnings while some rivals competed for market share. Conversely, Tesla (NASDAQ: TSLA) saw its stock remain stagnant throughout the week, as investors continue to digest anticipated sales declines for the first quarter of 2025.
On a positive note, data from S&P Global Market Intelligence indicates that Luminar Technologies surged by 66.3% this week, with Lucid Group (NASDAQ: LCID) increasing by 15.3%, and EVgo (NASDAQ: EVGO) up by 13.8% as of 3:30 p.m. ET. Following a shaky beginning to the year, it seems the EV market may be rebounding.
Luminar’s Earnings Boost
Luminar’s substantial rise was driven by its fourth-quarter 2024 earnings report, which revealed a 45% sequential revenue increase to $22.5 million, boasting cash reserves of $232.7 million. Revenue growth is projected to reach 10% to 20% in 2025 as LiDAR unit shipments surge for their series production. However, the company does not expect to achieve profitability, forecasting losses between $5 million and $10 million in addition to operational costs in the mid-to-high $30 million range.
Lucid’s Competitive Strategy
This week, Lucid announced a promotion offering $4,000 off for customers trading in a Tesla vehicle, signaling its intention to capture market share from the dominant EV manufacturer. Tesla has experienced challenges in 2025, as some consumers gravitate towards other brands, diminishing its appeal amidst Elon Musk’s increased political engagements.
Potential Growth for EVs?
A recovery in growth stocks this week has benefitted companies like EVgo. A shift away from Tesla could potentially enhance demand for EVgo’s charging services, although this remains speculative. Nonetheless, EVgo reported a loss of $127 million from ongoing operations in 2024, with $256.8 million in revenue. It remains uncertain how EVgo will carve out its niche in the market, especially if the overall EV sales remain weak.
Tesla’s Stagnation
This week’s market activity is particularly intriguing, given that while competitors’ stocks are rising, Tesla’s has dipped slightly. This trend may reflect a growing realization that Tesla does not monopolize the EV or autonomous vehicle markets, thus opening opportunities for other firms. For instance, Luminar is expanding its footprint with LiDAR technology featured on new Volvo models, while other autonomous technologies are rapidly advancing.
However, Tesla’s setbacks don’t guarantee that other companies will thrive. Many have yet to demonstrate profitability, and the EV manufacturing landscape has historically been fraught with challenges. The current stock price surges for these companies may be temporary, and I remain skeptical about their long-term viability until clearer financial improvements are observed.
