Lucid Group earnings preview: Deliveries forecast, Saudi Arabia update and pricing news could jolt shares
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Lucid Group (NASDAQ:LCID) heads into its earnings report on Wednesday with shares sputtering a bit. The EV stock was down 9.47% at 2:00 p.m. on Tuesday amid sharp selling across the automobile sector
Newark, California-based Lucid is forecast to report revenue of $274M and an EPS loss of $0.40 for the quarter. However, most of the attention of investors is expected to be on the production timeline update, pricing strategies, and any commentary on the investment from the Public Investment Fund of Saudi Arabia.
Morgan Stanley thinks the the PIF stake in LCID represents a "seat at the table" for the energy transition story that aligns with the KSAâs long term economic and social reforms of Vision 2030. The firm thinks investors should appreciate the potential for further expansion of the relationship as demonstrated to date with previously announced manufacturing plans in the KSA and other activities. While Lucid (LCID) has succeeded in bringing to market a car with compelling technology, analyst Adam Jonas reminded investors that they should consider the competitive and dilution risks - especially with a nearly $20B enterprise valuation discounting a successful outcome.
Bank of America has a more positive view on Lucid Group (LCID) ahead of the report, calling the stock one of the most attractive among the universe of start-up electric vehicle automakers and also a relative competitive threat. LCID is said to have currently more pieces of the puzzle in place and in process than most of its peers, which is seen pushing the company more successfully from concept to commercialization. "We believe LCID currently has more pieces of the puzzle in place and in process than most of its peers which, steered by a management team with impressive experience, should push the company more successfully from concept to commercialization," wrote analyst John Murphy.
Expect some share price volatility following the Lucid (LCID) report. Short interest stands at 22.5% of total float and options trading is implying a double-digit swing up or down after the report drops. Lucid (LCID) rallied 17.7% the day after its last earnings report.