Lucid Aims for Profitability Through Improved Manufacturing, Faces $1.88 Billion Loss Challenge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: NASDAQ.COM
- Profitability Challenge: Lucid reported a net loss of approximately $1.88 billion over the past three quarters, and despite the significant boost in production and deliveries from the Gravity SUV launch, the company remains far from achieving profitability, highlighting its difficult position in the EV market.
- Intensified Competition: Compared to Tesla, Lucid faces a more challenging market backdrop with substantial slowdowns in EV market growth, increasing competition from Chinese manufacturers, and the expiration of government subsidies, complicating its path to profitability.
- Strategic Similarity: Lucid is employing a growth strategy similar to Tesla's; however, while Tesla managed to achieve profitability after years of losses, Lucid's chances of replicating such success appear slim due to its weaker market position and resources.
- Funding Dependency: To sustain its operations, Lucid is likely to continue relying on new stock sales, which will create a dilutive impact for shareholders, further diminishing its attractiveness among investors.
Analyst Views on LCID
Wall Street analysts forecast LCID stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LCID is 18.82 USD with a low forecast of 10.00 USD and a high forecast of 30.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
1 Buy
9 Hold
2 Sell
Hold
Current: 10.050
Low
10.00
Averages
18.82
High
30.00
Current: 10.050
Low
10.00
Averages
18.82
High
30.00
About LCID
Lucid Group, Inc. is a technology company, which designs, engineers, and manufactures electric vehicles (EVs), EV powertrains, and battery systems in-house using its own equipment and factories. It sells vehicles directly to consumers through its retail sales network and through direct online sales. Its vehicles include Lucid Air and Lucid Gravity. Lucid Air is an advanced car, featuring powertrain technology. It offers 420 miles of the United States Environmental Protection Agency (EPA)-estimated range, with an 84-kWh battery pack. The Lucid Air Sapphire is the highest-performance version of the Lucid Air, boasting 1,234 horsepower from three motors, 427 miles of an EPA-estimated range (when equipped with standard wheel covers). The Lucid Gravity provides the interior space and practicality of a full-size SUV within the exterior footprint of a mid-size SUV. It provides space for up to seven adults. It has engineered the Lucid Gravity to deliver up to 450 miles of EPA-estimated range.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
