Lucid (NASDAQ: LCID) may be preparing to cut its annual production guidance, according to Cantor Fitzgerald analyst Andres Sheppard, ahead of the company’s highly anticipated second-quarter earnings call scheduled for Tuesday.
“There is a possible scenario where LCID could revise down its guidance,” Sheppard wrote in a new investor note released Monday. He reiterated a Neutral rating on the stock and set a $3 price target, implying an upside of roughly 24% from Lucid’s current trading price of $2.42.
Sheppard flagged that both production and delivery volumes for Q2 fell short of expectations. Lucid delivered 3,309 vehicles for the quarter, missing Cantor’s estimate of 3,791 and the Visible Alpha consensus of 3,611.
“A key item of focus will be gross margins as Lucid continues to work towards improving its persistently high negative GMs,” he added.
Cantor also expects management to provide more detail on the initial sales of the Gravity SUV, which began deliveries earlier this year, and confirm whether the company remains on schedule for the launch of its high-volume midsize SUV a key pillar for Lucid’s turnaround strategy.
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In July, Lucid announced a $300 million partnership with Uber to develop a “next-generation premium global robotaxi program,” with Uber planning to deploy at least 20,000 Lucid vehicles equipped with Nuro’s autonomous driving system over the next six years.
Meanwhile, Lucid has asked shareholders to approve a 1-for-10 reverse stock split, underscoring the pressure on the PIF-backed automaker as it struggles with profitability and scale in an increasingly competitive EV market.
