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- 1 LCID stock fell by 3.49% in a week and 66.01% in a year.
- 2 Experts argue that supply chain issues and expensive models caused a fall in the share price.
Lucid Group Inc. is facing trouble taking on the EV market, causing LCID stock to fall by 4.55%. Nevertheless, DNB Asset Management raised their investment in the company. Norway’s biggest bank altered its position in its United States traded stock portfolio. Notably, the luxury EV manufacturer fell short of deliveries forecast for Q2 2023.
Lucid Group Inc. (LCID Stock) – Financial Analysis
From April 2023 to June 2023, Lucid delivered 1,404 cars. In the first quarter of this year, the company delivered 1,406 vehicles. These numbers are very low compared to the analysis expectation of 2,000 deliveries per quarter.
In terms of production, Lucid produced only 2,173 vehicles at its Arizona plant, and this number fell by 6% compared to the previous quarter. However, in February 2023, the EV manufacturer is set to produce around 10,000 to 14,000 cars this year, indicating that they already have over 28,000 reservations.
The business seems to be affected by a subpar supply chain and the high price of the Lucid Air model. The price of the model starts at around $138,000, and that is before incentives. However, investors can rejoice as the company begins its shipment to Saudi Arabia. The Saudi Public Investment Fund (PIF) announced in May 2023 its plan to raise $3 Billion in a public stock sale, along with added investment from PIF.
Considering its rivals, Tesla Inc. (NASDAQ: TSLA) fell by 9.74% to $262.90 even after positive earnings. At the same time, Rivian Automotive Inc. (NASDAQ: RIVN) gained 3.95% to $25.81.
Lucid Group Inc. (NASDAQ: LCID) – Technical Analysis
NASDAQ: LCID at press time is trading at $6.92 and fell by 4.55%. Its previous close and open were at $7.25 and $7.16, respectively. The 52-week range is from $5.46 to $21.45, indicating that the current level is closer to the bottom. With an average volume of 32.78 Million shares, the market cap is $15.733 Billion.
The trailing twelve-month (ttm) earnings per share (EPS) is negative $1.71. Analysts placed a 2.00 rating for HOLD and estimated a price target at $9.29 with a 34.2% upside. Data suggest that over 48 Million shares recently changed hands, while the 100-day average has been around 38.47 Million.
Lucid Group reported its last earnings on May 8, 2023, where the reported revenue of $149.432 Million failed to beat the estimated value of $204.364 Million by 26.88%. Nevertheless, compared to the previous quarter, revenue gained 159.09%. At the same time, the reported earnings of minus $0.43 per share also failed to beat the expected value of negative $0.391 by 9.85%. Compared to the previous quarter, the EPS fell by 6.98%.
The subsequent earnings will be reported on August 7, 2023, where earnings is expected to be minus $0.352 per share, and revenue is estimated to be $189.209 Million. Operating expenses fell by 2.61% to $39.857 Million, and operating margin (ttm) tumbled by 392.34%.
Net income fell by 858.99% to minus $779.53 Million, net profit margin decreased by 270.13% to negative 521.66, and profit margin suffered by 286.13%. The revenue (ttm) is reported to be $699.49 Million. Total cash in hand at the end of the most recent quarter (mrq) is $2.98 Billion, while total debt (mrq) is $2.35 Billion.
Lucid Group Inc. (LCID Stock) – Candle Exploration
Since March 2023, LCID’s share price has been consolidating in a narrow range, with multiple failed breakout attempts. Some of these attempts formed immediate resistance at $8.22. If the price breaks the zone and surpasses the $8.22 mark, it must be sustained to beat R2.
Stooping EMA indicates weakness, while the negative crossover of the RSI, currently at 49.24, hints at a slight drop. However, the price should not drop below the strong support present at $6.11, but if it does, new lows for 2023 can be expected.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets and stocks comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
