Luxury electric vehicle (EV) maker Lucid Group (LCID) will report its Q4 results on February 25. Since going public in July 2021, this penny stock has fallen over 80%, due to weak demand, production and delivery issues, rising losses, higher capex, and growing competition. Despite these challenges, Lucid stock is up about 1.3% year-to-date. Wall Street forecasts a Q4 2024 loss of $0.25 per share, an improvement from the $0.29 per share loss in the same quarter last year.
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Meanwhile, revenues are expected to rise by 36% from the same quarter last year, reaching $214.1 million, according to data from the TipRanks Forecast page. Importantly, Lucid has missed earnings estimates five times in the past nine quarters, reflecting the struggles in the EV market.
Analysts’ Views on LCID Ahead of Q4 Results
Ahead of Lucid’s Q4 results, Benchmark analyst Mickey Legg initiated coverage on LCID stock with a Buy rating and a $5 price target, highlighting the company’s advanced technology, strong cash reserves, and product lineup.
Legg expects U.S. EV production to recover in 2025 after slowing in 2024, with further growth expected in 2026-27 as prices fall and charging infrastructure expands. He believes Lucid is well-positioned to capture a larger share of this market due to its solid cash base, funding from Saudi Arabia’s PIF, key partnerships, and in-house production.
In addition, Legg believes that while Trump’s plan to cut EV support may slow adoption, it could help Lucid gain market share as legacy automakers delay their shift to electric vehicles.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 16.01% move in either direction.
Is LCID Stock a Buy?
The stock of Lucid Group has a consensus Hold rating among seven Wall Street analysts. That rating is currently based on one Buy, four Hold, and two Sell recommendations issued in the past three months. The average LCID price target of $2.93 implies 4.25% downside from current levels.
