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Let’s Talk about the Recently Listed Lucid Group
Stock Analysis & Ideas

Let’s Talk about the Recently Listed Lucid Group

Story Highlights

Lucid Group was listed on the Nasdaq in July 2021 and got added to the Nasdaq-100 Index in December. It rivals the likes of Tesla, Rivian and Nio, among others.

California-based electric vehicle (EV) maker Lucid Group, Inc. (NASDAQ: LCID) went public through a merger with a special purpose acquisition company (SPAC) in July last year and was added to the Nasdaq-100 Index in December.

It raised $4.6 billion through an initial public offering (IPO), which valued the company at $24 billion.

Founded in 2007, the company commenced the production of its first EV in September last year, with deliveries beginning in October. Now, let’s explore more about the company.

Recent Developments & Q1 Results

At the beginning of this month, Lucid launched an online financing service for its Lucid Air customers. It introduced the digital platform in collaboration with Bank of America (NYSE: BAC). The platform offers lease and loan purchase options to people looking to buy its all-electric sedan.

Amira Aly, the Director of Financial Services at Lucid, said, “Our goal is to transform vehicle financing by introducing new processes that enable our customers to experience the luxury and technology of Lucid electric vehicles.”

Last month, the company reported a narrower-than-expected loss for the first quarter of 2022. The loss came in at $0.05 per share, compared to the Street’s loss estimate of $0.31 per share and the year-ago loss of $3.4 per share.

Lucid reported revenues of $57.7 million on the back of the delivery of 360 vehicles in the first quarter. Reservations for Lucid Air crossed 30,000, reflecting potential sales of $2.9 billion. It ended the quarter with cash in hand of around $5.4 billion.

Lucid’s CFO, Sherry House, said, “In addition to the 30,000 customer reservations we announced today, we recently signed a deal in which the government of Saudi Arabia committed to purchasing up to 100,000 electric vehicles from Lucid over the next 10 years.”

Further, the company reaffirmed its production volume guidance of 12,000 to 14,000 vehicles for 2022.

Morgan Stanley (NYSE: MS) analyst Adam Jonas expects Lucid to deliver 9,900 vehicles in 2022 and believes that “may be on the aggressive side.”

Jonas has a Sell rating on the stock with a price target of $12 (34.8% downside potential).

Stock Rating

Overall, the stock has a Moderate Buy consensus rating based on two Buys and one Sell. LCID’s average price target of $31 implies 66.67% upside potential from current levels. Shares have lost 50.3% over the past six months.

Hedge Funds’ Activity on TipRanks

TipRanks’ Hedge Fund Trading Activity tool shows that the confidence in Lucid is currently Positive, as the cumulative change in holdings across all five hedge funds that were active in the last quarter was an increase of 3.6 million shares.

Conclusion

Analysts expect Lucid to report a loss of $0.39 per share in the second quarter, narrower than the loss of $1.17 per share posted last year. LCID stock will get a much-needed boost if the company manages to beat the Street’s estimate like in the first quarter.

To discover more about such IPO stocks check the TipRanks IPO calendar. The tool brings to light the new IPO stocks and shows the most recent list of upcoming IPOs.

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