Lucid Group
LCID
, the electric vehicle (EV) manufacturer that was once a special-purpose acquisition company, or SPAC, has transformed into a very exciting name and opportunity for investors in the market.
LCID
, the electric vehicle (EV) manufacturer that was once a special-purpose acquisition company, or SPAC, has transformed into a very exciting name and opportunity for investors in the market.
Volatility hit LCID following its latest Q4 earnings reports and business updates. The EV industry experiences major price swings quite frequently due to investor speculation, and investors have been major participants in this rollercoaster price action in this emerging industry.
Let’s take a deeper dive into Lucid’s emergence in the EV industry and take a closer look into how its price action has performed compared to a leader and peers within the same realm.
Lucid’s Beginning
Lucid busted into the market a few years ago and was originally under the name of Churchill Capital Group IV. It became the Lucid we know last July after the merger had been completed.
In October of 2021, investor dreams came true; Lucid confirmed that the first customer deliveries would take place on October 30th, following up on its report in September that it had started production of its flagship Lucid Air EV.
The following day, shares soared 31% and nearly touched $40. LCID did not see any retracement until December, further fueled by the news report that Lucid opened a studio located in the Washington D.C. area in November.
Investors have been riveted over EV names ever since Tesla’s
TSLA
historic rise to become one of the most popular stocks in the world. Lucid considers itself to be a contending rival to Tesla, especially due to the longer-range capabilities of its EVs and an overall sleeker look to its designs.
TSLA
historic rise to become one of the most popular stocks in the world. Lucid considers itself to be a contending rival to Tesla, especially due to the longer-range capabilities of its EVs and an overall sleeker look to its designs.
Q4 Earnings
Previously, LCID forecasted that it would produce 20,000 total EV vehicles in 2022. During its Q4 earnings, they sliced that target by 40%, to a production goal of 12,000 to 14,000 vehicles.
Lucid said that severe supply chain and logistical issues have been the driving force behind the production slash. The company, however, remains confident, reassuring investors of its ability to capture the many future opportunities within the industry due to its cutting-edge technology and longer-range EV vehicles.
The company, similar to other EV ground-zero names, is not profitable yet. Lucid missed earnings in its latest report, reporting a loss per share of $0.37. The estimate for the quarter was -$0.22, representing a negative 42.3% surprise to investors.
The firm reported Q4 revenue of $26.4 million; roughly 80% of revenue came from its highly sought-after Air Dream electric vehicle that began deliveries last October. Lucid’s EVs have been a hot item, and it received more than 25,000 reservations, reflecting potential sales upwards of $2.4 billion. Revenue grew 581% from 2020 to 2021, while the cost of revenue rose nearly 5000%.
LCID is investing in expanding its footprint, allowing it to accelerate its ability to manufacture and deliver its EVs more efficiently. The company is constructing a brand-new state-of-the-art manufacturing facility in the Kingdom of Saudi Arabia and is pushing boundaries in its already established Arizona facility by expanding it by a massive three million square feet.
The EV producer states that the manufacturing facility it’s building in Saudi Arabia can bring in up to $3.4 billion in additional value, further propelling growth and future opportunities within its scope.
Lucid Group, Inc. Price, Consensus and EPS Surprise
Lucid Group, Inc. price-consensus-eps-surprise-chart
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Lucid Group, Inc. Quote
Comparisons Within Industry
The growth and longevity of the EV industry have been some of the biggest bets within the last several years among participants in the market. The EV industry represents a major shift from traditional automotive businesses and piques the interest of investors wanting to get in on the next big thing.
The biggest name in EV production, and a name we are all too familiar with, is Tesla. Tesla has become the gold standard whenever electric vehicles and groundbreaking technologies are discussed.
For a period dating back to last July after Lucid’s merger, LCID and TSLA saw very similar price action, and at one point last November, LCID took over Tesla in return on share price. The company’s return rose as high as nearly 100% while Tesla provided an approximately 80% return at its highest dating back to March 2021.
Tesla shares have remained much stronger in the more recent term than LCID’s. Year-to-date, Tesla is down 18% compared to Lucid’s decline of 35%. Lucid’s current market cap is around $40.6 billion, whereas Tesla holds a staggering $873 billion valuation.
Removing Tesla, in a peer group consisting of Fisker Inc
FSR
, and Nikola Motors
NKLA
, Lucid has outpaced both in market return. Over the past six months, the firm has posted a 26% return while the peer group has posted a roughly 11% return. This tells us that investors have more confidence in Lucid compared to peers.
FSR
, and Nikola Motors
NKLA
, Lucid has outpaced both in market return. Over the past six months, the firm has posted a 26% return while the peer group has posted a roughly 11% return. This tells us that investors have more confidence in Lucid compared to peers.
Lucid has a lot of ground to catch up if it wants to successfully rival Tesla and become a threat to the automotive industry; their highly coveted and widely reserved Lucid Air will be a major contributing factor to their success and future growth.
With production rate slashes dimming the light on Lucid’s future, investors saw this as a red flag for its fiscal 2022 growth. Lucid is expecting to perform and meet expectations once supply chain and logistical issues have subsided.
Expectations
Lucid has made major advances with its signature EVs, and is considered to be a highly competitive name within the industry. Tesla, it seems, to finally have found a worthy rival.
Unfortunately, due to circumstances out of its control, the company had to significantly reduce its production rate for fiscal 2022. It takes a massive amount of technology and services to properly produce and provide quality EVs, though this is expected to change in the future as the industry evolves.
Looking ahead, LCID expects its margins to significantly improve and for it to be a profitable company as its technology advances and it improves its processes. The EV industry is still young, and Lucid could be the next big leader.
Lucid Group (LCID), the electric vehicle (EV) manufacturer that was once a special-purpose acquisition company, or SPAC, has transformed into a very exciting name and opportunity for investors in the market.
Volatility hit LCID following its latest Q4 earnings reports and business updates. The EV industry experiences major price swings quite frequently due to investor speculation, and investors have been major participants in this rollercoaster price action in this emerging industry.
Let’s take a deeper dive into Lucid’s emergence in the EV industry and take a closer look into how its price action has performed compared to a leader and peers within the same realm.
Lucid’s Beginning
Lucid busted into the market a few years ago and was originally under the name of Churchill Capital Group IV. It became the Lucid we know last July after the merger had been completed.
In October of 2021, investor dreams came true; Lucid confirmed that the first customer deliveries would take place on October 30th, following up on its report in September that it had started production of its flagship Lucid Air EV.
The following day, shares soared 31% and nearly touched $40. LCID did not see any retracement until December, further fueled by the news report that Lucid opened a studio located in the Washington D.C. area in November.
Investors have been riveted over EV names ever since Tesla’s (TSLA) historic rise to become one of the most popular stocks in the world. Lucid considers itself to be a contending rival to Tesla, especially due to the longer-range capabilities of its EVs and an overall sleeker look to its designs.
Q4 Earnings
Previously, LCID forecasted that it would produce 20,000 total EV vehicles in 2022. During its Q4 earnings, they sliced that target by 40%, to a production goal of 12,000 to 14,000 vehicles.
Lucid said that severe supply chain and logistical issues have been the driving force behind the production slash. The company, however, remains confident, reassuring investors of its ability to capture the many future opportunities within the industry due to its cutting-edge technology and longer-range EV vehicles.
The company, similar to other EV ground-zero names, is not profitable yet. Lucid missed earnings in its latest report, reporting a loss per share of $0.37. The estimate for the quarter was -$0.22, representing a negative 42.3% surprise to investors.
The firm reported Q4 revenue of $26.4 million; roughly 80% of revenue came from its highly sought-after Air Dream electric vehicle that began deliveries last October. Lucid’s EVs have been a hot item, and it received more than 25,000 reservations, reflecting potential sales upwards of $2.4 billion. Revenue grew 581% from 2020 to 2021, while the cost of revenue rose nearly 5000%.
LCID is investing in expanding its footprint, allowing it to accelerate its ability to manufacture and deliver its EVs more efficiently. The company is constructing a brand-new state-of-the-art manufacturing facility in the Kingdom of Saudi Arabia and is pushing boundaries in its already established Arizona facility by expanding it by a massive three million square feet.
The EV producer states that the manufacturing facility it’s building in Saudi Arabia can bring in up to $3.4 billion in additional value, further propelling growth and future opportunities within its scope.
Comparisons Within Industry
The growth and longevity of the EV industry have been some of the biggest bets within the last several years among participants in the market. The EV industry represents a major shift from traditional automotive businesses and piques the interest of investors wanting to get in on the next big thing.
The biggest name in EV production, and a name we are all too familiar with, is Tesla. Tesla has become the gold standard whenever electric vehicles and groundbreaking technologies are discussed.
For a period dating back to last July after Lucid’s merger, LCID and TSLA saw very similar price action, and at one point last November, LCID took over Tesla in return on share price. The company’s return rose as high as nearly 100% while Tesla provided an approximately 80% return at its highest dating back to March 2021.
Tesla shares have remained much stronger in the more recent term than LCID’s. Year-to-date, Tesla is down 18% compared to Lucid’s decline of 35%. Lucid’s current market cap is around $40.6 billion, whereas Tesla holds a staggering $873 billion valuation.
Removing Tesla, in a peer group consisting of Fisker Inc (FSR), and Nikola Motors (NKLA), Lucid has outpaced both in market return. Over the past six months, the firm has posted a 26% return while the peer group has posted a roughly 11% return. This tells us that investors have more confidence in Lucid compared to peers.
Lucid has a lot of ground to catch up if it wants to successfully rival Tesla and become a threat to the automotive industry; their highly coveted and widely reserved Lucid Air will be a major contributing factor to their success and future growth.
With production rate slashes dimming the light on Lucid’s future, investors saw this as a red flag for its fiscal 2022 growth. Lucid is expecting to perform and meet expectations once supply chain and logistical issues have subsided.
Expectations
Lucid has made major advances with its signature EVs, and is considered to be a highly competitive name within the industry. Tesla, it seems, to finally have found a worthy rival.
Unfortunately, due to circumstances out of its control, the company had to significantly reduce its production rate for fiscal 2022. It takes a massive amount of technology and services to properly produce and provide quality EVs, though this is expected to change in the future as the industry evolves.
Looking ahead, LCID expects its margins to significantly improve and for it to be a profitable company as its technology advances and it improves its processes. The EV industry is still young, and Lucid could be the next big leader.
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