Shares of Lucid (LCID) jumped in after-hours trading after the EV company reported earnings for its second quarter of Fiscal Year 2024. Lucid produced 2,110 vehicles and delivered 2,394, which kept it on track to hit its yearly production goal of around 9,000 vehicles. It brought in $200.58 million in revenue, up 32.9% and above estimates, but saw a loss of -$0.29 per share, which missed expectations of -$0.27. However, Lucid’s deal with an affiliate of Saudi Arabia’s Public Investment Fund to raise $750 million through convertible preferred stock and secure a $750 million loan facility is what sent the stock soaring.
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The funds are aimed at covering general expenses, including capital projects and working capital. Lucid ended Q2 with $4.28 billion in cash and plans to keep a solid financial base to meet its goals. CEO Peter Rawlinson is upbeat about the firm’s sales growth, cost-cutting efforts, and the upcoming Lucid Gravity launch. He also emphasized that Lucid has been able to achieve an efficiency of 5.0 miles per kilowatt-hour, which is actually better than what the company anticipated.
Nevertheless, Lucid will likely continue to burn cash for a while. In fact, the company discloses this as a risk in its filings, stating that it expects “to continue to incur substantial losses and increasing expenses in the foreseeable future.” Currently, Finance and Corporate is the category with the most risks for Lucid, as pictured below.
What Is a Good Price for LCID Stock?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on LCID stock based on six Holds and three Sells assigned in the past three months, as indicated by the graphic below. After a 53% decline in its share price over the past year, the average LCID price target of $3.01 per share implies 0.33% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
