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Lucid Group (LCID)
NASDAQ:LCID
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Lucid Group
(NASDAQ:LCID)37Underperform
Positive Factors
Financial Performance
Lucid reported revenue of $235 million, slightly ahead of consensus expectations of $211 million.
Liquidity
Lucid ended the quarter with approximately $6.13 billion in total liquidity.
Production and Delivery
Lucid announced better-than-expected 4Q24 production and delivery numbers.
Negative Factors
Leadership Changes
The departure of Lucid's founder, CEO, and CTO, Peter Rawlinson, is much more consequential than understood by the market.
Operational Challenges
Future products may be delayed or never come to fruition, putting longer-term volumes at risk.
Uncertainty
There is heightened uncertainty post LCID announcing Peter Rawlinson will be stepping down as CEO and CTO, assuming the just created role of Strategic Technical Advisor to the Chairman.
Lucid Group (LCID) vs. S&P 500 (SPY)
Market Cap
$6.43B
Dividend YieldN/A
Average Volume (3M)87.89M
Price to Earnings (P/E)―
Beta (1Y)2.13
Revenue Growth35.71%
EPS Growth8.24%
CountryUS
Employees6,500
SectorConsumer Cyclical
Sector Strength53
IndustryVehicles
Share Statistics
EPS (TTM)-1.27
Shares Outstanding3,031,499,800
10 Day Avg. Volume108,936,887
30 Day Avg. Volume87,885,112
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.96
Price to Cash Flow (P/CF)-3.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.39Price Target Upside13.81% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering9
Lucid Group Business Overview & Revenue Model
Company DescriptionLucid Group, Inc. (LCID) is an American electric vehicle manufacturer and automotive company headquartered in Newark, California. The company specializes in producing luxury electric cars with a strong emphasis on innovation, sustainability, and advanced technology. Lucid's core product is the Lucid Air, a high-performance electric sedan that boasts impressive range, speed, and cutting-edge features. Lucid Group is committed to redefining the electric vehicle market by offering premium products that combine luxury with sustainable energy solutions.
How the Company Makes MoneyLucid Group generates revenue primarily through the sale of its electric vehicles, particularly the Lucid Air model. The company's revenue model focuses on the premium segment of the electric car market, targeting consumers who value luxury, performance, and advanced technological features. Lucid also aims to expand its revenue streams through direct sales and a network of showrooms and service centers. Additionally, the company is exploring opportunities in energy storage solutions and vehicle-related services, which could contribute to future earnings. Strategic partnerships and collaborations in technology and manufacturing may also play a role in enhancing Lucid’s market presence and revenue potential.
Lucid Group Financial Statement Overview
Summary
Lucid Group faces significant financial challenges with persistent losses, declining revenues, and negative cash flows. While the balance sheet maintains a reasonable equity base, the inability to convert assets into profitable operations and positive cash flows remains a critical issue.Income Statement
The income statement reflects significant challenges for Lucid Group, with persistent negative gross profit and net income margins over the years. The most recent annual report shows zero revenue, a substantial decline from the previous year, indicating severe revenue generation issues. The EBIT and EBITDA margins also remain negative, highlighting continued operational losses. Overall, the company is struggling to achieve profitability and maintain consistent revenue growth, which poses significant risks to financial stability.20
Very Negative
Balance Sheet
Lucid Group's balance sheet shows a mixed picture. The debt-to-equity ratio has improved slightly, reflecting a decrease in total debt and a solid equity base. However, the return on equity is negative due to ongoing net losses, and the equity ratio, while stable, is undermined by the company's inability to generate profits. Despite having substantial cash reserves, the company's assets are not translating into profitable operations, which is a concern for future financial health.40
Negative
Cash Flow
The cash flow statement indicates persistent negative free cash flow, reflecting ongoing difficulties in generating cash from operations. The operating cash flow to net income ratio remains adverse, suggesting inefficiencies in converting revenue into cash. Additionally, free cash flow continues to decline, exacerbating liquidity concerns despite previous financing activities that bolstered cash reserves. Overall, the cash flow situation underscores the need for improved cash management and operational efficiency.25
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 807.83M | 595.27M | 608.18M | 27.11M | 3.98M | Gross Profit |
| -923.11M | -1.34B | -1.04B | -127.79M | 906.00K | EBIT |
| -3.02B | -3.10B | -2.59B | -1.53B | -599.23M | EBITDA |
| -2.38B | -2.57B | -1.07B | -2.50B | -709.29M | Net Income Common Stockholders |
| -2.71B | -2.83B | -1.30B | -2.58B | -719.38M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 4.03B | 3.86B | 3.91B | 6.26B | 614.92M | Total Assets |
| 9.65B | 8.51B | 7.88B | 7.88B | 1.40B | Total Debt |
| 2.09B | 2.43B | 2.08B | 2.00B | 980.00K | Net Debt |
| 478.17M | 1.06B | 348.00M | -4.27B | -613.43M | Total Liabilities |
| 5.78B | 3.66B | 3.53B | 3.97B | 227.38M | Stockholders Equity |
| 3.87B | 4.85B | 4.35B | 3.91B | 1.18B |
| Cash Flow | Free Cash Flow | |||
| -2.90B | -3.40B | -3.30B | -1.48B | -1.03B | Operating Cash Flow |
| -2.02B | -2.49B | -2.23B | -1.06B | -570.20M | Investing Cash Flow |
| -1.29B | -946.98M | -3.68B | -420.69M | -459.58M | Financing Cash Flow |
| 3.55B | 3.07B | 1.35B | 7.14B | 1.29B |
Lucid Group Technical Analysis
Negative
2.10
Price Trends
2.89
Negative
2.67
Negative
2.96
Negative
Market Momentum
-0.18
Positive
29.79
Positive
5.28
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCID, the sentiment is Negative. The current price of 2.1 is below the 20-day moving average (MA) of 2.80, below the 50-day MA of 2.89, and below the 200-day MA of 2.96, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 29.79 is Positive, neither overbought nor oversold. The STOCH value of 5.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LCID.
Lucid Group Risk Analysis
Lucid Group disclosed 88 risk factors in its most recent earnings report. Lucid Group reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Lucid Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $875.02B | 133.46 | 9.73% | ― | 0.95% | -52.81% | |
78 Outperform | $27.64B | 20.88 | 15.27% | ― | 39.75% | 57.08% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% | |
56 Neutral | $19.42B | ― | -28.56% | ― | 63.42% | 54.15% | |
43 Neutral | $12.73B | ― | -72.34% | ― | 12.09% | 17.65% | |
38 Underperform | $16.98M | ― | -167.38% | ― | 141.23% | 69.50% | |
37 Underperform | $6.43B | ― | -70.08% | ― | 35.71% | 8.24% |
* Consumer Cyclical Sector Average
Performance Comparison
LCID
Lucid Group
2.10
-1.08
-33.96%
TSLA
Tesla
272.04
91.30
50.51%
NKLA
Nikola
0.18
-20.09
-99.11%
LI
Li Auto
27.67
-10.09
-26.72%
XPEV
XPeng, Inc. ADR
20.22
11.07
120.98%
RIVN
Rivian Automotive
11.26
0.33
3.02%
Lucid Group Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -19.54% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
Lucid had a strong year with record vehicle deliveries and successful product launches, indicating positive growth and financial stability. However, the company continues to face challenges with negative gross margins and potential regulatory impacts.Highlights
Record Year for Vehicle Deliveries
Lucid delivered 10,241 vehicles in 2024, a 71% year-over-year increase, marking a record year for the company.
Successful Launch of Lucid Gravity
Lucid Gravity SUV orders have exceeded expectations, with many customers opting for highly configured versions priced above $120,000.
Strong Financial Position
Lucid ended the quarter with approximately $5.08 billion in cash and a total liquidity of $6.13 billion, providing a runway into the second half of 2026.
Gross Margin Improvement
Lucid improved its gross margin significantly from negative 225% in 2023 to negative 114% in 2024, with further improvements expected in 2025.
Lowlights
Negative Gross Margins
Despite improvements, Lucid's gross margin remains negative at -114% for 2024 and -89% in Q4 2024.
Production Constraints
Lucid anticipates being supply constrained for the Gravity SUV in the first few quarters of 2025, impacting production capabilities.
Regulatory and Market Challenges
The company faces potential impacts from policy and regulation changes in the U.S., which could affect gross margins by 7% to 12%.
Company Guidance
During the Lucid Q4 2024 earnings call, the company provided detailed guidance for 2025, highlighting expectations of producing approximately 20,000 vehicles, up from 9,029 vehicles produced in 2024. The company also reported record deliveries of 10,241 vehicles in 2024. Lucid emphasized significant year-over-year improvements in gross margin, nearly halving the negative margin compared to 2023, with further improvements anticipated in 2025. The call underscored a strategic focus on scaling production, particularly for the Lucid Gravity SUV, which has seen promising order intake despite limited marketing efforts. The Gravity Grand Touring has garnered significant customer interest, with many orders configured above $120,000. For 2025, Lucid expects to significantly ramp up marketing initiatives to boost brand awareness and drive growth. Additionally, the company aims to strengthen its financial position, with liquidity projected to extend into the second half of 2026, bolstered by strategic partnerships and capital investments. Lucid also plans to expand its technology licensing business, with ongoing discussions for new deals as the company continues to advance its technology leadership in the EV industry.Lucid Group Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Lucid Group Announces CEO Transition and Strategic Focus
Neutral
Feb 25, 2025
On February 21, 2025, Peter Rawlinson resigned as CEO and CTO of Lucid Group, transitioning to a Strategic Technical Advisor role. Marc Winterhoff, previously COO, was appointed as Interim CEO, with the Board initiating a search for a permanent successor. This leadership change is part of Lucid’s succession planning, aiming to maintain operational continuity and strategic growth. The transition follows the successful launch of the Lucid Gravity, with the company focusing on production ramp-up and cost reduction strategies.
Executive/Board ChangesBusiness Operations and Strategy
Lucid Group Appoints New Chief Financial Officer
Positive
Jan 28, 2025
On January 28, 2025, Lucid Group announced that Taoufiq Boussaid would join as Chief Financial Officer on January 29, 2025, following the filing of the 2024 Annual Report. This strategic appointment is expected to strengthen Lucid’s financial leadership, with Boussaid bringing extensive experience from past roles at N.V. Bekaert S.A. and Bombardier Transportation. In conjunction with this, Gagan Dhingra, the interim CFO, will transition to Senior Vice President, Finance and Accounting, reflecting the company’s commitment to enhancing its financial management team.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.