Analyst Flags Concerns After Tesla Rival's Cash Blow, Electric Vehicle Price Rise Business Daily

Analyst Flags Concerns After Tesla Rival’s Cash Blow, Electric Vehicle Price Rise Business Daily

Lucid (LCID) has confirmed its 2022 production target after the midshipman You’re here (TSLA) challenger delivered 360 Lucid Air electric vehicles in the first quarter, amid a supply disruption. Lucid stock rose slightly on Friday.




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For the first quarter, Lucid reported nearly $58 million in revenue, driven by 360 electric vehicle deliveries during the quarter, the startup said in its earnings release Thursday evening. This suggests a small ramp from 125 electric vehicle deliveries in Q4 2021 amid “global supply chain and logistics challenges, including Covid-related factory closures in China”, according to the company statement. Lucid began deliveries of the Air luxury electric sedan on October 30 last year.

Lucid reported 30,000 Air EV reservations as of May 5. That’s up from February’s 25,000 bookings and represents a total of $2.9 billion in potential sales.

Additionally, LCID maintained its previously lowered 2022 production target from 12,000 to 14,000 electric vehicles. However, on Thursday it announced price increases of up to 13% for new bookings from June.

LCID’s quarterly cash burn totaled $870 million, leaving it with $5.39 billion in cash at the end of the first quarter, which will fund the company through 2023, according to Thursday’s statement.

In a note to clients on Friday, CFRA analyst Garrett Nelson pointed to Lucid’s “challenges in achieving significant sales volumes given the price of its vehicles and a likely future capital raise.” These make up for the quality of the Lucid Air EV, the Saudi support and the new factory in Arizona, he said.

Nelson maintained a view on LCID shares but cut his price target from $5 to $20 per share.

Lucid joined EV Startups Fisker (FSR) and Nicholas (NKLA) by reaffirming key production and delivery targets, despite the global chip shortage.


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lucid gains

Estimates: Analysts polled by FactSet expected Lucid to lose 33 cents per share on revenue of $55.6 million. There are no numbers from a year ago.

Results: Lucid lost 5 cents a share on revenue of $57.7 million.

Outlook: Analysts expect Lucid to sharply reduce net loss per share to $1.22 for the full year from a loss of $6.41 per share in 2021. Revenue is expected to climb to $1.275 billion in 2022, up from $27.1 million last year. The figures for 2021 only relate to three quarters.

Arizona-based Lucid began producing the award-winning luxury Lucid Air in fall 2021. But it ran into significant supply and logistics issues, like other automakers.

Starting in June, Lucid will increase price increases for various Air models by up to 13%.

“Looking forward, we remain focused on ramping up production,” Lucid CEO Peter Rawlinson said in Thursday’s statement.

On April 26, Lucid announced that the Saudi government would purchase up to 100,000 Lucid electric vehicles over 10 years. The Saudi sovereign wealth fund is one of the main players in the LCID. Rawlinson called the deal “another pivotal moment” for his company, which Wall Street generally views as a viable competitor to Tesla.

Lucid Stock, Nikola Stock

Lucid stock fell 3.8% to 18.14 in the stock market today, trading well below key technical support levels. Shares of Lucid fell nearly 7% on Thursday ahead of the earnings report.

Nikola shares fell more than 9% on Friday after jumping 6.4% on Thursday. Fisker stock jumped 4.7% after losing 6.1% on Thursday.

All three new electric vehicle stocks remain mired well below their 200-day lines. The relative strength lines of Lucid stock and its EV startup counterparts show a serious lag, a sign of underperformance relative to the S&P 500 Index.

Tesla stock initially rebounded 1.5% on Friday, then fell to reduced losses. Shares fell more than 8% on Thursday.

Nikola, lucid updates

On Thursday, Nikola announced that it had started producing the Tre electric semi-trailer on March 21. NKLA continues to expect deliveries of 300 to 500 electric vehicles this year. The EV startup is testing a longer-range hydrogen-powered Tre truck, slated for the second half of 2023.

In the first quarter, net loss widened to 21 cents per share from 14 cents a year ago. Nikola reported $1.9 billion in service revenue. Analysts expected Nikola to lose 25 cents per share on token earnings.

In September 2020, short seller Hindenburg Research targeted Nikola stock, accusing it of “an ocean of lies”. Nikola is now under new management.

Late Wednesday, Fisker said it plans to start producing the Ocean SUV on November 17. He associates with magna (MGA) on production. Fisker reported that ocean reservations now stand at more than 45,000, up about 50% from February.

In the first quarter, Fisker lost 41 cents per share versus estimates for a loss of 39 cents and a loss of 11 cents a year ago.

Find Aparna Narayanan on Twitter at @IBD_Aparna.

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