Lucid (NASDAQ: LCID) announced its Q2 results in an earnings call on August 5. During the call, it revealed yet another $1.5 billion cash injection from the Saudi Public Investment Fund (PIF).
LCID stock reacted positively to the news, adding 5.67% in the pre-market trading after suffering losses of 3.85% in the latest trading session, which lowered its price to $3 at the close while reaching $3.39 in the pre-market due to gains.
However, other metrics in the report are not so optimistic: the adjusted loss per share was $0.29, which fell short of the estimated loss of $0.27.
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Additionally, the adjusted EBITDA loss was $647.6 million, also exceeding the expected loss of $560.9 million and representing a year-over-year decline of 8.8%.
Technical analysis of LCID stock
After a positive advancement during the month of July, which saw LCID stock trading at a high of $4.32 and well above its closest resistance zones at $3.93 and $3.40, the most recent trading sessions brought a decline to $3 level.
This means that LCID shares are trading in between the previously set resistance zone at $3.40 and support at $2.55, where a decisive move beyond any of these could signal a trend reversal or confirmation.
The falling Relative Strength Index (RSI) indicator confirms the current bearish sentiment. Coincidentally, the RSI peaked on July 16, when the LCID stock price reached its highest level in recent months.
However, since then, the RSI indicator has shown a falling trend with the latest close of 43, which could point towards oversold levels for this EV stock.
Analysts are not optimistic about LCID stock
Strictly basing their predictions on the company fundamentals and broader market factors, Wall Street analysts find it hard to get excited about LCID stock, as they assign it a “moderate sell” based on 9 examinations. Of these, none advised a “buy,” six opted for “hold,” and three recommended a “sell.”
The average price target is $3.01, signaling a potential upside of just 0.3% from the latest closing price.
Despite the cash injections and higher-than-expected delivery numbers, it seems that Lucid still has a long way to go before technical analysis and Wall Street analysts speak in its favor.
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