Hey there, fellow investors! It’s time to talk about Lucid Group (NASDAQ:LCID) and their latest quarterly results. Unfortunately, it looks like the Street wasn’t too impressed with what they saw, as shares dropped around 14%. But let’s break down the numbers. In Q4 of 2022, Lucid generated revenue of $257.7 million, which is a big jump from the same period a year ago when they only made $26.4 million. However, it fell short of Street expectations by $15.89 million. But the good news is that they beat expectations on the bottom line with EPS of -$0.28, better than the anticipated -$0.42. Now, there were some production snags that limited Lucid’s production to just 7,180 vehicles, which is far below their original target of 20,000. But they did better than their reduced production guidance of 6,000-7,000 vehicles. Looking forward, they expect to produce between 10,000 to 14,000 vehicles in 2023. One thing to note is that reservations have been falling for the second successive quarter. They went from 37,000 in 2Q22 to 34,000 in 3Q22, and then down to 28,000 in Q4. Analyst Jonas expects the stock to fall further, giving it an Underweight rating with a $5 price target. However, it’s important to keep in mind that Jonas is by far the most prominent LCID bear on the Street. Overall, there are 3 Buys and 4 Holds for a Hold (i.e. neutral) consensus rating. Plus, Lucid has big-money backers, like Saudi Arabia’s Public Investment Fund and investment firm BlackRock, which reportedly owns over 31 million shares of LCID stock. So, can Lucid compete successfully against automotive giants like Tesla in the highly competitive EV industry? It’s a tough question that prospective investors should carefully consider. But if the EV industry grows in the next few years, Lucid should be able to sell a decent number of vehicles. Personally, I expect the stock to reach $15 in 2025, which would represent a pretty decent return on investment. But what do you think? Let me know in the comments below!
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Disclosure: This video was done by myself, and it expresses my own opinions. This is not investment advice or financial advice and it should not be taken as investment advice or financial advice in any way shape or form. I am not receiving any form of compensation for this video from the company or organization that I am expressing opinions about. This video is for entertainment and or educational purposes only.
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