Morgan Stanley analyst Adam Jonas lowered today Lucid Group price target from $16 to $12 while maintaining Underweight rating. Based on yesterday’s close, the new price target implies a downside of 51% after the company reported, during Earnings Conference, that 2022 production outlook is now 12k – 14k, down from 20k vehicles. Lucid shares are currently trading 8.30% lower while U.S. Futures are down on the day with Nasdaq trading 1.68% lower, as of 3:24 PM EST.
Earlier this month, Citigroup Inc has filed a 13F-HR form disclosing ownership of 362,694 shares of Lucid Group with total holdings valued at $13.8M as of 2021-12-31. On the previous 13F-HR form, the firm disclosed owning 11,307 shares of Lucid at a value of $0.287M. This represents a change in shares of 3,107% and a change in value of 4,708% during the quarter.
According to official data, the firm currently holds call options representing 855,000 of underlying shares valued at $32,533,000 USD and put options representing 2,243,500 of underlying shares valued at $85,365,000 USD .
Lucid Group announced this week the signing of agreements with the Ministry of Investment of Saudi Arabia (“MISA”), the Saudi Industrial Development Fund (“SIDF”), and the Economic City at King Abdullah Economic City (“KAEC”), as it lays the groundwork for a full production factory in Saudi Arabia.
The agreements are expected to accelerate Saudi Arabia’s strategic goal to transform and diversify its economy through the development of sustainable energy and transportation. Lucid estimates that the location of Lucid’s first international manufacturing plant in the Kingdom of Saudi Arabia may result in up to $3.4 billion of value to Lucid over 15 years, and the facility will enable Lucid to address growing demand for Lucid’s products — Lucid stated.
keypoints from Lucid’s Earnings
- Production exceeds 400 vehicles as of February 28, 2022, with 125 customer deliveries as of year-end 2021 and over 300 deliveries to date;
- 2022 production outlook updated to 12K – 14K vehicles;
- Customer reservations > 25K for potential sales of $2.4B;
- Cash-on-hand > $6.2B;
- 2.85 million square foot expansion of Casa Grande, Arizona manufacturing facility on track; announced plans for new manufacturing facility in the Kingdom of Saudi Arabia;
- Customer reservations now exceed 25,000, reflecting potential sales of more than $2.4B.
The Company’s Q4 revenue was $26.4 million, including $21.3 million from initial deliveries of its innovative Lucid Air Dream Edition, which began in October. Lucid delivered 125 cars to customers in the fourth quarter, with total production exceeding 400 vehicles to date and over 300 deliveries to customers. Lucid has also taken over 25,000 customer reservations as of today, reflecting potential sales of more than $2.4B. The Company confirmed its 2.85Msquare foot expansion of the Casa Grande, Arizona manufacturing facility is on track, and it announced plans to build a new manufacturing facility in the Kingdom of Saudi Arabia. Lucid cited supply chain constraints and a continued focus on quality alongside an updated outlook for its 2022 production of Lucid Air to a range of 12,000 to 14,000 vehicles.