All articles tagged with #lucid group
Lucid Group has lowered its full-year EV production forecast to 18,000-20,000 vehicles after missing Q2 earnings estimates, reporting a net loss of $855 million and facing slower demand for EVs amid industry challenges and policy changes. Despite recent investments and increased vehicle deliveries, the company's stock has declined nearly 19% this year.
Lucid Group's stock surged over 36% after announcing a partnership with Uber and Nuro to deploy 20,000 Gravity SUVs with self-driving tech, signaling a strategic move into AI-enabled autonomy. Morgan Stanley maintains a hold rating with a $3.00 target, viewing the deal as a potential catalyst for future growth in autonomous driving and AI partnerships, despite cautious overall sentiment. The company is expected to report a narrower Q2 loss and increased revenue, with investors keen on updates regarding Gravity production and partnership impacts.
Lucid Group is cutting 400 jobs, about 6% of its workforce, as part of a restructuring plan to optimize operating expenses. This follows a previous reduction of 1,300 positions last year. The company faces challenges in the competitive EV market, with shares down 35% year-to-date. The restructuring will incur charges of $21-25 million, mostly recognized in the current quarter.
After hours, Nvidia, Etsy, Rivian, and Lucid Group are among the stocks making significant moves, with Nvidia's shares rising after the company reported better-than-expected earnings and revenue, while Etsy's stock fell despite beating earnings estimates. Rivian and Lucid Group also experienced fluctuations in their stock prices following their respective earnings reports.
Lucid Group (NASDAQ:LCID) stock has plummeted 95% from its highs, presenting a potential buying opportunity for investors interested in the rapidly expanding electric vehicle market. Despite challenges such as lower-than-expected vehicle deliveries and high cash burn rates, the company is focused on expanding its manufacturing capabilities and vehicle portfolio. However, investors should be prepared for volatility, as Lucid will need to significantly increase production and navigate competition to achieve consistent profitability. With a consensus Hold rating and an average price target of $5.09, Lucid Motors remains a high-risk, high-reward investment worth considering for those willing to weather the uncertainties in the EV industry.
Lucid, Fisker, and QuantumScape stocks dropped due to reports of higher-than-expected inflation, a shift of investor funds towards cryptocurrencies, and away from stocks. Lucid's stock declined after it delivered more electric cars than it sold, indicating weak demand. Fisker aims to boost enthusiasm by hosting a large owner meetup, while QuantumScape, Fisker, and Lucid face challenges amid significant cash burn rates.
Lucid Group, Inc. (NASDAQ:LCID) has a high price-to-sales (P/S) ratio compared to the industry, which may be surprising considering its revenue growth forecasts are in line with the wider industry. The company has been experiencing exceptional revenue growth, with an 85% gain in the last year and a projected 107% annual growth for the next three years. However, investors may be overestimating the stock's potential, as the elevated P/S ratio is unlikely to be sustained in the long term without a significant positive change. It is worth noting that there are also some risks associated with the company, including shareholder dilution and current unprofitability.
Lucid Group's shares fell by 8% after the company introduced a cheaper version of its Air electric luxury sedan, called the Air Pure, in an effort to boost demand. Priced at $77,400 with a range of 410 miles, the single-motor, rear-wheel-drive Air Pure is $5,000 cheaper than the previous lowest-cost model. Lucid's stock has been declining amid concerns about ongoing demand for the Air, despite positive reviews and the vehicle's long range. The introduction of a more affordable option comes as consumer borrowing costs rise and competitors, such as Tesla, slash prices.
Lucid Group's second-quarter production dropped while deliveries remained flat, causing a 6% drop in the company's shares. The luxury electric-vehicle maker has been facing supply chain issues and intensified competition due to a price war initiated by Tesla. Lucid delivered 1,404 vehicles in the quarter, compared to 1,406 in the previous quarter, with production falling 6% to 2,173 vehicles. The company had previously lowered its 2023 production forecast and reported lower-than-expected first-quarter revenue due to the impact of Tesla's price war and rising interest rates. Lucid has been dealing with a cash crunch and recently announced plans to raise $3 billion through a stock offering, with a significant portion coming from its largest investor, Saudi Arabia's Public Investment Fund.
Luxury electric vehicle maker Lucid Group fell short of Wall Street estimates with its second-quarter deliveries of 1,404 Air sedans, compared to expectations of around 2,000. The company's stock has fallen about 58% in the past year amid concerns about demand for its expensive Air luxury sedan, despite having "over 28,000" reservations. Lucid recently cut about 18% of its workforce and struck a deal with Aston Martin Lagonda to supply electric-vehicle powertrains. The company expects to produce "over 10,000" vehicles in 2023 and has enough cash on hand to continue operations until at least the second quarter of 2024.
Analyst Gary Black warns that Lucid Group, along with other electric vehicle (EV) startups, could face bankruptcy risks due to challenges in selling their vehicles. Lucid delivered 1,406 units in Q1 and aims to deliver 10,000 units in 2023, but concerns remain about its long-term viability. Black also predicts that Nikola and Workhorse Group may file for bankruptcy protection this year. Workhorse has faced production and liquidity challenges, while Nikola has shifted its focus to fuel-cell energy trucks. Elon Musk previously warned about the risks faced by automotive companies that fail to streamline operations and cut costs.
Lucid Group's majority shareholder, Saudi Arabia's Public Investment Fund, has purchased more shares in the luxury EV startup, while Lordstown Motors has filed for Chapter 11 bankruptcy protection and put itself up for sale after a key partner, Foxconn, backed off. The news highlights the importance of robust alliances with larger players in the capital-intensive business of making electric vehicles.
Lucid Group announced a partnership with Aston Martin to supply electric powertrains and battery systems for the British luxury carmaker's first and future all-electric vehicles. Aston Martin will give Lucid a 3.7% stake in the company and make cash payments worth about $232 million. Lucid's stock rallied off a 52-week low, while rival Nikola plunged nearly 15% after multiple semi-trucks reportedly caught fire at its headquarters. Lucid also confirmed it is preparing to enter China, the world's largest auto market.
Tesla and Alphabet stocks fell after being downgraded by Goldman Sachs and UBS, respectively, while Moderna's stock rose after being upgraded by UBS. IBM's stock fell slightly after reports of a potential acquisition of software company Apptio. Lucid Group's stock rose after a deal with Aston Martin, and PacWest Bancorp's stock rose after selling its specialty finance loan portfolio. Mercury Systems' stock fell after being downgraded by JPMorgan.
Lucid Group's stock bounced back after a supply agreement with Aston Martin was disclosed, in which the UK-based automaker will pay a $232 million technology access fee to Lucid, including $100 million in shares of Aston Martin and $132 million in cash payments over a three-year period. In turn, Lucid will provide Aston Martin access to its powertrain and battery-system technologies, and Lucid’s powertrain and battery components will be integrated with Aston Martin’s battery electric vehicle (BEV) chassis. The companies’ long-term partnership is subject to approval by Aston Martin shareholders and other conditions.