Written by Cláudio Afonso | LinkedIn | X
Cantor Fitzgerald reiterated Friday a Neutral rating on the shares of the electric vehicle maker Lucid following the company’s third quarter earnings results reported on Thursday.
In a new research note, the analyst Andres Sheppard has lowered the firm’s 2024 vehicle production forecast to 8,453 units, down from a prior estimate of 9,000, despite Lucid reaffirming the 9,000 target on the shareholder deck.
As of the time of writing, Lucid shares are trading 4.05% higher at $2.31. Based on Thursday’s closing price, the new price target implies an upside potential of 35%.
Additionally, Sheppard trimmed the next year’s revenue projection to around $1.38 billion, compared to a previous forecast of $1.46 billion. The firm adjusted its gross margin outlook for 2025 from -45% to -59%.
“We continue to believe that Lucid’s vehicles are able to provide higher battery efficiency, longer battery range, better performance, and faster charging relative to other passenger EVs,” the analyst stated, affirming the company’s technology advantage in the electric vehicle (EV) market.
Despite these points, the analyst noted the financial headwinds, pointing to “high negative gross margin and slower ability to scale up.”
“We are lowering our blended ASPs in 4Q24E to $78,000 (from $83,785) as we account for the leasing financing,” the analyst wrote, which led to a revised fourth-quarter revenue estimate of approximately $192 million, down from $207 million.
Following these concerns, Cantor Fitzgerald cut its price target for Lucid to $3 from $4, citing reduced average selling prices (ASPs) and an increased share count due to the equity raise announced in October.
Lucid reported a $200.0 million revenue, a slight drop from the 200.6 million reported between April and June but up 45% year over year.
On Thursday, the company opened customer orders in the U.S. for its second model, the Lucid Gravity.
The Gravity lineup begins with the Grand Touring variant, available now for pre-order starting at $94,900. This higher-end trim is projected to deliver 828 horsepower and a projected range surpassing 440 miles, according to the EV maker.
The more affordable Touring version, starting at $79,900, is scheduled for production beginning in late 2025.
Written by Cláudio Afonso | LinkedIn | X
