Lucid Group (LCID), a leading electric vehicle (EV) manufacturer, surpassed quarterly delivery estimates by delivering 3,099 vehicles in the fourth quarter, marking an 11% increase over the previous quarter. This comes from its new Gravity SUV and potential discussions around an auto industry partnership. It sent the stock surging 38.5% in value last December, fueled by investor optimism following the launch. Despite financial challenges, the company raised $1.75 billion late last fall, expected to help fuel Lucid’s financial capabilities until 2026.
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However, potential changes to EV-friendly policies under President-elect Donald Trump pose future challenges for Lucid and the EV industry. Despite the recent enthusiasm propelling the stock, investors might want to hold off until greater clarity on how the EV market fares under the new administration.
Production and Deliveries Exceed Expectations
Lucid is a Silicon Valley-based technology company that creates leading-edge electric vehicles (EVs). The company’s portfolio includes the award-winning Lucid Air and the newly released Lucid Gravity. These vehicles are produced in Lucid’s advanced, vertically integrated factory in Arizona.
The company recently announced impressive quarterly results. In Q4, it delivered 3,099 vehicles, outperforming the estimated 2,637 and exceeding expectations with an 11% growth over the previous quarter and a 78% increase year-over-year. Annual deliveries posted robust growth of 71% to 10,241 vehicles.
The company also saw a 42% production surge to 3,386 vehicles, topping estimates of 2,904 units. Lucid’s annual progress also shone brightly, with a 7% rise in production to 9,029 vehicles in 2024, beating its target of 9,000.
Recent Top-and-Bottom-line Beats
Lucid reported strong growth in Q3, with record vehicle deliveries and a 45% increase in total revenues compared to Q3 2023. The company reported revenue of $200.0 million on the back of 2,781 vehicle deliveries, beating analysts’ expectations by $2.26 million.
Additionally, Lucid’s cost reduction strategies have yielded positive results, improving its gross margin performance. Earnings per share (EPS) of -$0.28 exceeded analysts’ projections by $0.03.
Financially, the company is in a robust position, ending Q3 with approximately $5.16 billion in total liquidity. This liquidity was further enhanced post-Q3 with a successful capital raise of approximately $1.75 billion. The company boasts strong support from Saudi Arabia’s Public Investment Fund and other institutional investors.
High Volatility with Little Return
The stock is highly volatile, with a beta of 2.67, and has bounced around the past year as it posted a slight 0.67% return. It trades near the middle of its 52-week price range of $1.93 – $4.43 and shows positive price momentum by trading above major moving averages.
Analysts following the company have taken a cautious stance on LCID stock. Lucid Group is rated a Hold overall, based on the recent recommendations of nine analysts. Their average price target for LCID stock over the next 12 months is $2.91, representing a potential downside of -3.64% from current levels.
Bottom-line on Lucid
Lucid has captured some upward momentum, exceeding expectations by delivering 3,099 vehicles in the last quarter. The introduction of the Gravity SUV and potential partnerships have fueled investor optimism. Lucid’s financial position and growth potential make it a stock investors might want to keep a close eye on while awaiting more clarity on the future landscape of the EV market.
