American electric vehicle (EV) maker Lucid (NASDAQ:LCID) produced 2,314 vehicles in the first quarter, while it delivered 1,406 vehicles, reflecting weak demand. Analysts were expecting the company to deliver about 2,000 Air Sedans. LCID shares fell 6.3% in Thursday’s extended trading session.
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Moreover, both production and deliveries declined compared to the fourth quarter of 2022. The company produced 3,493 vehicles in Q4 2022 and delivered 1,932 units. In February, the company said that it expects to produce 10,000 to 14,000 vehicles this year. The subdued production guidance came even as the company claimed to have reservations of over 28,000 as of February 21, 2023, representing potential sales of more than $2.7 billion.
In the full-year 2022, Lucid delivered 4,369 vehicles and generated revenue of $608 million. It reported a loss per share of $1.51 compared to $6.41 in the prior year.
Amid rising competition and macro pressures, Lucid recently announced its decision to reduce its headcount by 1,300 employees or 18% as part of a restructuring plan. The company expects to record charges in the range of $24 million to $30 million in connection with its restructuring plan.
Is Lucid a Buy, Sell, or Hold?
Wall Street is cautiously optimistic about Lucid, with a Moderate Buy consensus rating based on four Buys, three Holds, and one Sell. The average price target of $9.92 suggests 20.2% upside potential. Shares have advanced 21% since the start of 2023.
