For investors hoping 2024 will bring better days for Lucid Group (NASDAQ:LCID), it has been thoroughly disappointing already. Two weeks into the new year, the shares are down by 30% as last week’s trading brought with it fresh lows for a stock that has been on an almost continuous downtrend for the past couple of years.
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Meanwhile, the company’s Q4 production and delivery announcement failed to lift sentiment, even though the figures were generally okay. Q4 production reached 2,391 units, while deliveries came in at 1,734, outpacing the 1,696 deliveries expected on Wall Street. For the full year, production totaled 8,428 vehicles, while the company delivered 6,001 units.
The annual production figure came in at the top end of the guide for 8,000 to 8,500 vehicles but that doesn’t really tell the full story. Lucid’s original target for the year stood at 14,000 and that was then lowered to 10,000 before being revised downward again toward the year’s end. The company will report Q4 results on February 21.
Looking further ahead, later this year, Lucid’s Gravity SUV – unveiled at the LA Auto Show in November – is slated to enter production. Can that be the catalyst to bring about a shift in sentiment? Baird analyst Ben Kallo thinks it might be, but there are lingering concerns.
“We continue to view LCID’s technology positively, however, we look for improved consumer health and stronger demand to become more constructive,” the analyst said. “We expect demand will be the biggest question for the stock in 2024 and note that the production of the LCID Gravity SUV late in the year may be a potential catalyst.”
For now, Kallo remains on the sidelines with a Neutral rating and a $6 price target. Kallo, however, might as well have just said ‘Buy,’ as the figure suggests the stock will double in value over the next year. It will be interesting to see whether the analyst upgrades his rating or lowers the price target in the coming months. (To watch Kallo’s track record, click here)
Other Street analysts mostly offer similar theses. Based on a total of 8 Holds vs. 1 Sell, the stock claims a Hold consensus rating. The shares are expected to appreciate by ~76% over the next 12 months, considering the average target stands at $5.09. (See Lucid stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
