Written by Cláudio Afonso | LinkedIn | X
Lucid Motors announced Monday it delivered 2,781 units of its luxury sedan Lucid Air nearly doubling the figures from the third quarter of last year.
In a new research note, Baird analyst Ben Kallo commented on the results saying they surpassed the firm’s estimates but also Wall Street consensus estimates. According to a poll by Visible Alpha with eight analysts, the consensus estimates were at 2,242 units.
The analyst reiterated the firm’s Neutral rating on Lucid stock, maintaining a price target of $3 per share.
As of this writing, Lucid shares are trading 3 percent higher at $3.44, suggesting Baird’s price target implies a potential downside of roughly 13 percent.
Kallo noted that deliveries outpaced production (2,781 vs. 1,805) which will improve cash flow and reduce the drag of inventory as start of production of Lucid’s upcoming model, the Gravity SUV, is the company’s next potential catalyst.
In the third quarter, production declined sequentially from 2,110 vehicles to 1,805, a drop of about 14.5 percent.
The company noted that on Monday that “approximately 8 percent,” which is about 222 units, were “subject to operating lease accounting.”
The EV maker will report its third quarter earnings results after the market close on November 7.
Lucid, which is preparing to start deliveries of the second model of Gravity late this year, has recently reaffirmed the annual production guidance of 9,000 vehicles.
Written by Cláudio Afonso | LinkedIn | X
