Shares of several electric-vehicle companies closed lower on Thursday, after global auto giant Toyota (NYSE:TM) said that it will cut its September production by 40% due to parts shortages.
Here’s how these companies fared on Thursday, relative to their closing prices on Wednesday.
Faraday Future Intelligent Electric (NASDAQ:FFIE) closed down 7.3%. Fisker (NYSE:FSR) closed down 7.2%. GreenPower Motors (NASDAQ:GP) closed down 8.5%. Lordstown Motors (NASDAQ:RIDE) closed down 9.5%. Lucid Group (NASDAQ:LCID) closed down 3.7%. Nikola (NASDAQ:NKLA) closed down 7.3%.
Toyota said on Thursday morning that it will cut production at 14 of its factories in Japan next month due to parts shortages, reducing its global output for the month by 40%. That news sent many auto stocks lower today — and vulnerable electric-vehicle start-ups suffered some of the largest declines.
There are two separate issues here. First is the ongoing global shortage of semiconductors, a result of high demand for consumer electronics during the COVID-19 pandemic. The chip shortage has already forced many automakers, including Tesla and Ford Motor Company, and electric vehicle suppliers including Romeo Power, to reduce or postpone production.