Nikola (NASDAQ: NKLA) and Lucid (NASDAQ: LCID) both disappointed investors in similar ways after their public debuts. Both electric vehicle (EV) makers went public by merging with special purpose acquisition companies (SPACs), attracted a stampede of bulls with their optimistic production forecasts, then drove them away by missing those estimates by a mile and racking up steep losses in a deteriorating macro environment.
Both companies also initially dazzled the bulls with their ambitious plans. Nikola tried to establish a first-mover’s advantage in the electric semi truck market with its battery-powered and hydrogen-powered vehicles. Lucid wanted to create a new luxury brand for EVs that targeted higher-end customers than Tesla. But today both EV stocks trade more than 90% below their all-time highs. Should investors give either of these stocks a second chance as the bulls stay far away?