Written by Cláudio Afonso | LinkedIn | X
Needham analyst Vikram Bagri published on Wednesday a research note on the electric vehicle maker Lucid Motors following the Technology and Manufacturing Day held on Tuesday.
Bagri reiterated the Hold rating on the stock saying the firm maintains a favourable view of the company despite admitting that, “to date, the messaging hasn’t resonated with consumers”.
“We reiterate our Hold rating after attending Lucid’s Technology and Manufacturing Day. Lucid highlighted their best in class EV efficiency tech, but to date the messaging hasn’t resonated with consumers, leaving demand and the timing of scale as consistent overhangs,” the analyst wrote.
“The event struck us as a reintroduction to Lucid ahead of the Gravity SUV launch, with Lucid looking to re-ignite both investor and consumer passion for the brand and the stock,” Bagri added.
The analyst sees now Lucid surpassing delivery estimates for the third quarter based on the announcement made Tuesday that, as of August 31, year to date figures have surpassed the 2023 record of 6,001 units.
Lucid has recently reaffirmed the annual production guidance of 9,000 vehicles. If it reaches its annual production target, the company’s annual production figures will increase by about 6.79 per cent from 2023.
“Lucid provided an early read on 3Q, with Lucid set to deliver ahead of consensus units if they can maintain the same monthly run rate as July and August. We are bullish on Lucid’s best in class tech driving industry leading EV ranges, and see the Gravity SUV launch as a low risk call option, but uncertainty on the timing of positive gross margins and adj EBITDA profitability underwrites our Hold rating,” Needham analyst concluded.
In Germany, one of its European markets, the company registered 13 units last month, four more than in July and five more than the same month last year.
Written by Cláudio Afonso | LinkedIn | X
