Lucid Motors (NASDAQ: LCID) stock experienced a remarkable surge in July, propelled by a robust electric vehicle (EV) market and the company’s CEO making ambitious statements.
The combination of market optimism and visionary leadership has contributed to Lucid’s impressive performance, capturing the attention of investors and fueling anticipation for its future prospects.
However, the electric carmaker’s shares plunged significantly on July 13, after its Q2 production report missed Wall Street estimates.
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Lucid’s production down 6% from previous quarter
On Wednesday, Lucid Group reported a quarter-over-quarter decline in Q2 production, sending its shares tumbling. More specifically, production dropped around 6% from Q1 2023 to 2,173 vehicles, according to the report.
Meanwhile, deliveries remained relatively flat sequentially. The company delivered 1,404 cars in the latest quarter, almost unchanged from the 1,406 it reported in the earlier quarter. However, the delivery figure missed Wall Street expectations by around 600 vehicles.
Additionally, Lucid slashed its 2023 production forecast and posted a worse-than-anticipated revenue in May after coming under pressure due to the EV price war started by industry leader, Tesla (NASDAQ: TSLA).
Lucid stock price analysis
At the time of publication, shares of Lucid were standing at $7.16, down nearly 12% on the day. Triggered by the disappointing Q2 report, the latest stock market slump wiped around $1 billion from the company’s market cap.
Still, on a monthly chart, LCID remains up more than 13%, driven by robust delivery and production data from the broader EV sector, the company’s recent deal with UK auto giant Aston Martin, and a major investment from Saudi Arabia’s sovereign wealth fund.
In addition, Lucid CEO Peter Rawlinson said the company plans to roll out two new vehicles, aimed at competing with Tesla’s flagship Model Y and Model 3 cars.
Future outlook
In the wake of Lucid’s latest share price decline, CFRA Research analyst Garret Nelson had no optimistic comments on the EV maker.
“We continue to view Lucid as a broken growth story and its ramp up rate has been particularly disappointing considering its newer, state-of-the-art factory in Casa Grande, Arizona.”
– CFRA Research analyst Garrett Nelson said.
Similarly, market expert and Future Fund manager Gary Black believes the company will likely miss its 2023 delivery guidance of 10,000. This is because Lucid only delivered about 2,800 cars since the beginning of the year, making the 10,000 targets hardly possible before the end of the year. As a result, it is more likely that the company will deliver around 6,000 in 2024, Black added.
Unless it manages to drastically improve its deliveries, Lucid’s stock may face further risks for the remainder of the year. Investors will closely monitor the company’s production and delivery progress as it plays a crucial role in shaping the stock’s trajectory moving forward.
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