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Is Lucid stock doomed? Revenue growth over $5 billion off 2023 target

Is Lucid stock doomed? Revenue growth over $5 billion off 2023 target

In its 2021 special purpose acquisition company (SPAC) presentation, US electric vehicle (EV) maker Lucid Motors (NASDAQ: LCID) revealed a presentation outlining the company’s revenue and delivery goals for a multi-year period. 

In its financial overview, Lucid articulated an ambitious objective of achieving an annual revenue exceeding $5.5 billion by 2023. Nevertheless, as of August 2023, the company appears to be significantly distant from realizing this target.

Notably, the electric automaker reported Q2 2023 earnings results on Monday, August 7, showing that the company generated just $150.9 million in the second quarter. The figure is similar to Lucid’s Q1 revenue, which amounted to just below $150 million.

Lucid’s 2021 SPAC presentation. Source: @StockMKTNewz Twitter

Nonetheless, with $300 in revenue in the first two quarters, Lucid remains $5.2 billion short of its 2023 annual target. At this point, it’s clear that the Newark, California-based car manufacturer’s full-year revenue will be nowhere near that number, according to data retrieved on August 8.

Lucid also missed its 2022 revenue goal by a significant margin. Specifically, the carmaker’s 2021 financial guidance showed that the company was targeting $2.2 billion in 2022 annual revenue, significantly higher than the $608 million it actually reported.

Lucid’s Q2 2023 deliveries also disappoint

Apart from its revenue falling short of expectations, Lucid’s Q2 2023 delivery figures came weaker than expected as well. 

The carmaker said it delivered 1,404 Air sedans in the latest quarter, roughly 600 short of Wall Street analysts’ estimates. The figure is almost identical to what Lucid reported in Q1 2023, while year-over-year, deliveries grew by more than 700 vehicles. 

For the full fiscal year, Lucid reiterated the production guidance it offered in May when it said it expected to produce more than 10,000 vehicles in 2023. The company originally projected to produce between 10,000 and 14,000 vehicles this year and claimed it had over 28,000 reservations for Lucid Air at the time. 

Lucid stock analysis

At press time, shares of Lucid were standing at $6.41, down 3.17% over the past 24 hours.

The stock is in the red across all time periods, losing 15% on the weekly chart and nearly 10% over the past month. 

LCID 1-week price chart. Source: Finbold

Year-to-date, LCID share price is down 8%. 

Some of the stock’s recent declines may be due to the company’s latest price cuts. Specifically, Lucid slashed the price of its Air Pure to $82,400 from around $93,000 and reduced the price of its Touring version to about $95,000 from $107,000.

However, investors did not react well to the move as price cuts may signal demand issues at the company. A similar reaction happened when Tesla (NASDAQ: TSLA) announced price cuts earlier this year, triggering a notable sell-off in the stock. 

But after the Q2 report, it is clear that Lucid is dealing with demand-related challenges, given that the company missed expectations for both revenue and vehicle deliveries. 

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