Written by Cláudio Afonso | LinkedIn | X
On Monday, CFRA released a new research note on Lucid Motors where the firm maintained its Strong Sell rating on the stock while lowering to $1.00 the price target — implying a downside potential of 68 percent.
The U.S. EV manufacturer reported on Monday that it delivered 2,394 vehicles in the second quarter of the year, while producing 2,110 units, beating expectations from Wall Street analysts — including CFRA.
However, the firm sees the numbers as insufficient to significantly reduce unit costs. The cost of goods sold (COGS) for the Lucid Air remains high, recorded at $206,000 per vehicle in the first quarter of 2024.
In the research note, CFRA enhanced that the EV maker reported a cash and equivalents balance of $4.0 billion at the end of the first quarter of the year, against a total debt of $2.4 billion.
Lucid scheduled a conference call to discuss its first quarter 2024 financial results on August 5 at 5:30 pm eastern time immediately after releasing its financial results.
The firm sees the $700 million quarterly cash burn rate as concerning for the company’s long-term sustainability. CFRA says the discounts and incentives that have been introduced have not translated into a substantial increase in consumer interest for the Lucid Air.
In an email sent last week, the company announced that was introducing a new leasing incentive of $7,500 Air Credit for customers in the United States. This offer is in addition to the existing $4,000 bonus available for inventory vehicles.
The firm expects Lucid’s 2024 adjusted earnings per share (EPS) at -$1.33 (from -$1.35) as it reiterates the 2025 EPS estimate at -$1.25.
In late February, Lucid had provided a production guidance of “approximately 9,000” vehicles, up from the 8,428 units in 2023. In the fourth quarter, the company delivered 1,734 vehicles and produced 2,391 vehicles.
Global X Lithium & Battery Tech ETF (LIT) has filed a new form revealing that it has cut its stake in the electric vehicle (EV) manufacturer Lucid Motors by 7 percent after selling nearly 664,000 shares.
Based on the closing price last Friday, the present value of the ETF’s position in Lucid stands at $25.4 million.
Roger Atkins, Founder of “Electric Vehicles Outlook” and one of the most respected voices in the EV industry, shared on LinkedIn that Lucid Motors CEO Peter Rawlinson will be interviewed by him at the Goodwood Festival of Speed (FoS) later this week.
Written by Cláudio Afonso | LinkedIn | X
