Analysts flag these concerns after Tesla Rival’s money burning, EV price increases investor’s business daily

Sure (LCID) confirmed its production target for 2022 after the aspiration Tesla (TSLA) Challenger delivered 360 Lucid Air EVs in the first quarter, amid supply disruptions. The clear share rose on Friday.


For the first quarter, Lucid posted nearly $ 58 million in revenue, driven by 360 EV deliveries during the quarter, the startup said in its earnings report late Thursday. It suggests a small ramp from 125 EV deliveries in Q4 2021 amid “global supply chain and logistics challenges, including Covid-related plant shutdowns in China,” according to the company’s statement. Lucid began deliveries of the luxurious electric sedan Air on October 30 last year.

Lucid reported 30,000 Air EV reservations as of May 5th. That was up from 25,000 reservations in February and represents a total of $ 2.9 billion in potential sales.

In addition, LCID maintained its previously lowered production target for 2022 of 12,000–14,000 electric cars. However, on Thursday it announced price increases of as much as 13% for new reservations starting in June.

LCID’s quarterly cash consumption was $ 870 million, leaving it with $ 5.39 billion in cash by the end of Q1, which will fund the company into 2023, it said in Thursday’s release.

In a note to customers Friday, CFRA analyst Garrett Nelson Lucids flagged “challenges in achieving significant sales volumes given the car’s pricing and a likely future capital raising.” These offset the quality of Lucid Air EV, Saudi Arabian support and new plant in Arizona, he said.

Nelson maintained an opinion on the LCID stock, but cut the price target by $ 5 to $ 20 per share.

Lucid joined EV startups Fisherman (FSR) and Nikola (NKLA) to confirm important production and delivery targets, despite global chip shortages.

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Clear income

Estimate: Analysts asked by FactSet expected that Lucid would lose 33 cents per share on a turnover of 55.6 million dollars. There are no figures for years ago.

Results: Lucid lost 5 cents per share on a turnover of 57.7 million dollars.

Outlook: Analysts expect that Lucid will sharply reduce its net loss per share to $ 1.22 for the full year from a loss of $ 6.41 per share in 2021. Revenue has risen to $ 1.275 billion in 2022 from $ 27.1 million last year. The 2021 figures apply to only three quarters.

Arizona-based Lucid began producing the award-winning, luxurious Lucid Air in the fall of 2021. But it has faced significant supply and logistics challenges, like other automakers.

From June, Lucid will increase prices for various Air models by as much as 13%.

“Looking ahead, we remain intensely focused on increasing production,” Lucid CEO Peter Rawlinson said in Thursday’s release.

On April 26, Lucid announced that the Saudi government will purchase up to 100,000 Lucid electric cars over 10 years. The Saudi Sovereign Wealth Fund is a top LCID stakeholder. Rawlinson called the deal “another key moment” for his company, which Wall Street generally sees as a viable Tesla competitor.

Lucid Stock, Nikola Stock

The Lucid share fell 3.8% to 18.14 in the stock market today, and is trading well below the key levels for technical support. Shares in Lucid fell almost 7% on Thursday before the earnings report.

Nikola shares fell more than 9% on Friday after jumping 6.4% on Thursday. The Fisker share jumped 4.7% after losing 6.1% on Thursday.

All three new EV shares remain well below the 200-day lines. The relative strengths of the Lucid stock and its EV start-up colleagues show severe lag, a sign of underperformance compared to the S&P 500 index.

Tesla shares first rose 1.5% on Friday, then fell to small losses. Shares fell more than 8 percent on Thursday.

Nikola, clear updates

On Thursday, Nikola announced that it will start producing the electric semi-truck Tre on March 21. NKLA still expects 300-500 electric cars this year. The EV start-up is testing a hydrogen-powered wooden truck with a longer range, which will be delivered in the second half of 2023.

In Q1, net losses increased to 21 cents per share from 14 cents a year ago. Nikola reported $ 1.9 billion in service revenue. Analysts expected Nikola to lose 25 cents per share on symbolic revenue.

In September 2020, short seller Hindenburg Research targeted the Nikola share and accused it of “a sea of ​​lies”. Nikola is now under new top management.

Late Wednesday, Fisker confirmed that they expect to start producing Ocean SUV on November 17. It cooperates with Magna (MGA) on production. Fisker reported that oat reservations are now at more than 45,000, an increase of about 50% from February.

In Q1, Fisker lost 41 cents per share against estimates of a loss of 39 cents and a loss of 11 cents a year ago.

Find Aparna Narayanan on Twitter at @IBD_Aparna.


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