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Lucid Motors (LCID) is an automaker that specializes in designing, engineering, and manufacturing next-generation electric vehicles (EV)s, as well as their battery systems and powertrains. Its flagship model is the luxury Lucid Air sedan.
About Lucid Motors Stock
Lucid Motors, with its headquarters in California, is valued at $9 billion. Investors should note that much of its backing comes from Saudi Arabia, and specifically its Public Investment Fund (PIF). A PIF affiliate, Ayar Third Investment, is its majority shareholder with an over-58% stake. The company has already opened its first assembly plant in Saudi Arabia.
Lucid Motors had a very volatile 2024. Shares are down nearly 22% over the past 52 weeks, and over 53% over the past two years. However, the start of the new year has been more promising for the EV startup. LCID stock is up nearly 30% over the past month.
Lucid Starts Gravity Deliveries
Lucid Motors announced that it began delivering its electric Gravity SUV to customers at the end of December. It began taking orders for its “Grand Touring” trim version of the SUV in November, starting sales at $94,000. Later this year it will launch a “Touring” trim at a lower price point of $79,900.
This is a big push in capturing market share, as its only other model on the market is the Air sedan. Gravity is expected to compete with Tesla’s (TSLA) Model X, which starts at $79,900 with its top-end model costing $94,990. Lucid CEO Peter Rawlinson called the target market for SUVs “6 times larger” than its previous addressable market.
The company made the delivery announcement via a social media post on X (formerly known as Twitter), along with a short video showing its customers receiving their vehicles from its Casa Grande manufacturing site in Arizona.
In addition, Lucid is on track to initiate production of a new model that will be priced at $48,000 to give it access to a lower-cost market. This vehicle which will directly compete with Tesla’s Model 3 and Model Y.
Lucid Announces Third-Quarter Results
Lucid Motor’s most recent quarterly results came on Nov. 7. Its third-quarter results showed that the company produced 1,805 vehicles in the quarter, on track to achieving its annual target of 9,000 vehicles. Deliveries ramped up by 91% year-over-year to 2,781 vehicles.
The EV producer reported a loss of $992.5 million during the quarter, translating to a loss of $0.41 per share against analysts’ estimated $0.32-per-share loss. Revenue came in at $200 million, up 45% year-over-year and beating analysts’ $198.1 million estimate.
In terms of margins, the company had a gross margin of -106%, up from last year’s -241% while the operating margin stood at -385%, compared to -546% reported in the same quarter last year. It ended its quarter with a cash reserve of $1.89 billion, up from 1.37 billion in 2023.
Lucid Motors is set to announce its fourth-quarter results on Feb. 25, 2025.
What Do Analysts Think About LCID Stock?
Analysts aren’t too optimistic about the stock as seen by a consensus “Hold” rating and a mean price target of $2.91, which is below the stock’s current trading price. The stock is covered by 10 analysts, receiving one “Strong Buy” rating, eight “Hold” ratings, and one “Strong Sell” rating.
