Lucid Group Inc (LCID)

Lucid Group (LCID) stock fell by 14.10% due to disappointing earnings results despite solid top-line momentum.

• Continued Losses Amid Revenue Growth: Since going public, Lucid has struggled to turn a profit, consistently reporting substantial losses despite revenue exceeding estimates. In the first quarter, the company produced 1,728 vehicles and delivered 1,967 cars, indicating a positive demand trend as revenue surged by 40% to $172.7 million, surpassing the consensus of $157 million. However, Lucid remained deeply unprofitable, with a negative gross profit of $232 million and a GAAP loss of $729.9 million, albeit slightly improved from the previous year.
• Outlook and Challenges: Lucid's liquidity remains secure at $5 billion, supported by a recent $1 billion investment from an affiliate of the Saudi Public Investment Fund. However, the company continues to burn cash rapidly, reporting a free-cash-flow loss of over $700 million. All eyes are now on the launch of Lucid's Gravity SUV, scheduled for late 2024, which is crucial for the company's scalability and path to profitability. The stock may face challenges amidst a broader correction in the EV sector, with slowed demand growth for electric vehicles. The success or failure of the Gravity SUV launch is likely to heavily influence Lucid's future trajectory.

Lucid Group (LCID) stock crashed by 5.66% following Ford Motor Co.'s decision to slash prices on its electric pickup truck, sparking an industrywide price war on electric autos.

• Industrywide Price War Impact: The price war on electric autos, initiated by Ford's price cuts, has raised concerns among investors as it could significantly impact profit margins, especially for unprofitable startups like Rivian Automotive Inc. and Lucid Group Inc. This development threatens to further delay the timeline for these companies to become profitable. Lucid closed at all-time lows on Thursday, with Lucid's stock hit its lowest close ever at $2.50. The overall slowdown in demand for EVs since late 2023 has been a contributing factor, leading to price cuts by automakers to stimulate sales.
• Analyst Commentary: Bloomberg Intelligence analyst Steve Man highlighted the challenges facing Lucid, stating that another round of EV price cuts could erode their profit margins and cash reserves. Bank of America also cut its price target for Lucid from $4.50 to $3.50, reflecting the increasing challenges in the EV market.

Lucid Group (LCID) stock plummeted by 16.76% due to underwhelming quarterly performance and cautious guidance for 2024. Here are the details:

• Disappointing Quarterly Results and Guidance: Despite being in production with its Air luxury sedan, Lucid reports a loss of $0.29 per share in Q4, slightly better than Wall Street's expectations. However, revenue falls short at $157.2 million, below the $180 million consensus. Lucid delivered 1,734 vehicles in Q4 and 6,001 in 2023, marking a modest 37% increase from the previous year.
• Slower Growth Outlook: Contrary to Wall Street forecasts of 14,000 vehicles, Lucid plans to produce only 9,000 vehicles in 2024, disappointing investors hoping for accelerated expansion. This projection follows the production of 8,428 vehicles in 2023.

Lucid Group Inc. (LCID) stock plummeted by 5.67% due to Tesla, Inc.'s recent earnings and revenue misses. Tesla's performance tends to have a ripple effect on its smaller counterparts, which was evident in the premarket trading session.

• Tesla's earnings: Tesla reported its fourth-quarter adjusted earnings per share at 71 cents, falling short of the 74-cent consensus estimate. Additionally, its revenue slightly missed the consensus, coming in at $25.17 billion compared to the expected $25.58 billion. While Tesla's core auto gross margin exceeded the Street estimate at 17.2%, the company did not provide specific volume guidance for 2024.
• Impact on Smaller EV Companies: Tesla's performance can have a significant impact on its smaller counterparts, especially as they prepare to release their quarterly results. Lucid Group reported weak production and delivery figures for the fourth quarter of 2023, raising concerns about its sustainability in an industry facing a slowdown and heightened price competition.

Lucid Group Inc (LCID) stock dropped by 7.82% due to a series of negative developments contributing to this drop, including recall announcement, previous negative news, challenges ahead and upcoming earings report concerns.

• Recall Announcement: Lucid Group's share price fell following news of a substantial vehicle recall. Lucid revealed that it would be recalling over 2,000 vehicles due to potential issues with high-voltage coolant heaters. This recall covers Lucid Air models from both 2022 and 2023.
• Previous Negative News: The stock had already experienced a decline after Lucid published its vehicle delivery and production update for the fourth quarter of 2023. The report showed that Lucid produced 2,391 vehicles and delivered 1,734 vehicles during that period. Interestingly, the recall now affects more vehicles than the company delivered in the last quarter of 2023. For context, Lucid produced 8,428 vehicles in the entire year and delivered 6,001 vehicles during that time frame.
• Challenges Ahead for Lucid: While challenges are common for young companies in emerging industries, Lucid faces the added pressure of a highly competitive EV market. The company has incurred significant losses and must significantly scale up production and deliveries to attain profitability. Despite positive reviews and acclaim for its vehicles, the recall presents a significant setback. Lucid has also struggled to meet production targets recently.
• Upcoming Earnings Report: Investors and market observers will closely watch Lucid's fourth-quarter earnings results, scheduled for release on February 21. The company's performance during the period and its business outlook will be discussed in a conference call, shedding more light on the path forward for Lucid Group Inc.

Shares of Lucid Group Inc (LCID) dropped by 9.75% from $4.72 to $4.26 in the trading on Wednesday, December 20, 2023. The reason why LCID down today is due to a report by The Wall Street Journal (WSJ) detailing financial difficulties in the electric vehicle (EV) industry.

• Industry-Wide Challenges: The WSJ highlighted financial challenges faced by numerous EV companies that had gone public through special purpose acquisition company (SPAC) transactions in 2020 and 2021. Out of 43 such companies, 18 were identified as being "at risk of running out of cash by the end of 2024".
• Impact on Lucid Group: While Lucid Group was mentioned in the report, it was not classified as at risk of running out of cash in 2024. Nevertheless, the negative sentiment surrounding the EV industry influenced Lucid's stock price, resulting in an 8.5% decline on the mentioned date. The report also pointed out that many of these companies had made overly optimistic growth projections before going public, potentially setting the stage for shareholder lawsuits if those projections are not met. In summary, Lucid Group Inc's stock experienced a significant drop due to concerns about the broader EV industry, as reported by The Wall Street Journal, despite Lucid's relatively favorable position in the report.

Shares of Lucid Group Inc (LCID) dropped by 8.46% from $4.61 to $4.22 in the trading on Tuesday, December 12, 2023. The reason why LCID down today is due to the immediate resignation of the company's Chief Financial Officer (CFO), Sherry House. Investors responded with mixed sentiments to House's departure. While Lucid portrayed it positively, emphasizing her confidence in the company's future, some concerns emerged. The abrupt nature of the resignation, the absence of an immediate successor, and the vague explanation citing House's pursuit of other opportunities left investors cautious. House will assist with the transition in an advisory role until December 31, 2023, while Gagan Dhingra, Principal Accounting Officer, takes on the role of interim CFO.

Shares of Lucid Group (LCID) dropped by 8.14% from $4.30 to $3.95 in the trading on Wednesday, Novemeber 8, 2023. The reasons why LCID down include:

• Mixed Quarter Results: Lucid reported a Q3 loss of $0.28 per share, better than expected, but its revenue of $137.8 million fell short of analysts' estimates.
• Reduced Production Outlook: Lucid lowered its Q4 production expectations to 8,000 to 8,500 vehicles, down from over 10,000. This change is driven by manufacturing adjustments and challenges in fulfilling earlier production promises.
• EV Industry Challenges: The entire electric vehicle industry is facing slower demand, affecting even established companies like Tesla, Ford, and General Motors.

Shares of Lucid Group (LCID) dropped by 6.49% from $4.62 to $4.32 in the trading on Monday, November 6, 2023. The reasons why LCID down include:

• Tesla's Bold Move: Elon Musk, Tesla's CEO, visited the Gruenheide plant in Germany, where they currently make Model Ys for Europe. He announced Tesla's intention to produce a 25,000-euro EV, closely aligning with the rumored Model 2 price point.
• Challenges for Competing EV Brands: This development poses a challenge to competitors like Rivian, Fisker, and Lucid, whose current electric models are significantly pricier than Tesla's upcoming Model 2.
• Lucid's Response: Lucid responded by offering limited-time discounts of $7,500 to $10,000 on certain models, but their prices still remain notably higher than the Model 2's expected cost.
• Lucid's Earnings and Upcoming SUV: Lucid Group is reporting Q3 earnings on November 7, with estimates indicating a loss of 35 cents per share and revenue of $183.8 million. Key areas to watch include production and deliveries, as they aim for 10,000 vehicles in 2023. Lucid also plans to introduce the Lucid Gravity SUV in November 2023, with production slated for late 2024. They've launched "Autumn Pricing and Lease Offers" with discounts on Lucid Air models in the U.S. and Canada, running until November 30.

Lucid Group, Inc. (LCID) dropped by 9.40% from $5.00 to $4.53 in the trading on Wednesday October 18, 2023. The reason why LCID stock down today is due to effect from production and delivery update. Including 700 vehicles en route to Saudi Arabia, Q3 production was 2,250. That's only 3.5% more than it produced in the second quarter, which is not much of a production ramp-up and signals a lack of overall demand. That data is disappointing, it seems that demand for its high-end, niche vehicles isn't rising without the Saudi order.

Lucid Group, Inc. (LCID) dropped by 5.30% from $5.28 to $5.00 in the trading on Tuesday October 17, 2023. The reasons why LCID stock down today include

• Unimpressive Q3 production report: Lucid produced 1,550 vehicles during the Q3, down substantially from its Q2 total of 2,173. It delivered 1,457 vehicles in the quarter, just a slight increase from the 1,404 it delivered in the Q2.
• Concerns about production goal: The Q3 numbers make it unlikely that Lucid will reach its goal of producing 10,000 vehicles this year. The EV maker has struggled as production has been slow to scale.
• Decrease in demand: Demand for Lucid's higher-priced EVs has been lukewarm due to economic uncertainties following the Federal Reserve's rate-tightening and the aggressive price cuts initiated by Tesla in 2023, which have affected the entire EV industry.

Shares of Lucid Group (LCID) dropped by 7.19% from $5.20 to $5.16 in the trading on Thursday October 5, 2023. The reasons why stock LCID is down today includes:

• New Air EV version launch: Lucid Motors is introducing a cheaper option for its Air sedan, the single-motor, rear-wheel-drive Air Pure, starting at $77,400 with a 410-mile range. This is $5,000 cheaper than their previous lowest-cost model. Lucid's stock has seen a 24% decline in 2023, partly due to concerns about Air's demand and its high price compared to competitors like Tesla, which have been reducing prices. The Air Pure is Lucid's first model below $80,000, while the top-end Sapphire version costs $249,000 with 1,234 horsepower.
• Cautious sentiment after Rivian's announcement of debt offering: Investor sentiment turned cautious following Rivian's announcement on October 4 of a $1.5 billion convertible debt offering, sparking concerns that Lucid Group might follow suit. Both companies appear to be facing similar financial challenges. Recent data from S&P Global Market Intelligence reveals that Lucid has burned through $3.7 billion in the past year, including $900 million in the last quarter alone. This has raised apprehensions among investors about Lucid's financial stability and its potential need for additional capital.

Lucid's stocks (LCID) dropped 5.90% today following its Q2 production and delivers figures. Both numbers shrank sequentially from Q1. It also missed the consensus forecast, which set a low bar for Lucid's upcoming second-quarter earning report on August 7th.

https://www.fool.com/investing/2023/07/15/is-it-too-late-to-buy-lucid-group-stock/

LCID's stock fell 11.82% after the company's second quarter EV deliveries miss expectations. For the quarter, Lucid said it delivered 1,404 vehicles, missing Wall Street’s estimate of 1,873, and produced 2,173 vehicles in the quarter. In Q1, Lucid delivered 1,406 cars and produced 2,314, meaning the company didn't match its prior period’s output. In May, the California-based automaker said it was on track to produce 10,000 EVs in 2023.

https://finance.yahoo.com/news/lucid-stock-tumbles-as-ev-maker-misses-on-q2-deliveries-174130223.html