Lucid Group falls sharply after production update underwhelms
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Shares of Lucid Group (LCID
-17.1%) plunged after the company posted its second earnings report as a public company.
The electric vehicle maker held back from providing any new updates to longer-term financial targets, but did reveal that reservations for the Lucid Air are +25K vs. the +17K tally noted during the December update. Bank of America calculated that the reservations amount to an encouraging order book of over $2.4B.
The firm also said the lowered LCID outlook for production in 2022 of 12K to 14K units was not entirely unexpected directionally, but somewhat surprising in magnitude as LCID attributed the new outlook to supply chain and logistics challenges.
Looking ahead, Bank of America is still positive on Lucid (NASDAQ:LCID).
"Our Buy rating on LCID is predicated on our view that the company is one of the most attractive among the universe of start-up electric vehicle automakers and also a relative competitive threat to the universe of incumbent automakers. This is due to LCIDâs innovative/competitive electric powertrain technology (endorsed by its battery pack supplier status in Formula E), interesting/attractive product (specifically in first model Air sedan and second concept model Gravity SUV), arguably intangible value in the form of the Lucid brand (targeting next-generation âpost-luxuryâ consumer values), direct-to-consumer sales and service strategy to manage the customer experience, and a greenfield/clean-sheet approach to manufacturing electric platform/ vehicles."
LCID is expected to be a beneficiary of the automotive industry evolution towards electrification, even as the competitive landscape among both incumbents and entrants becomes increasingly fierce. 
Bank of America reiterated a Buy rating on Lucid (LCID) and price objective of $60.
See the 6-month chart of Lucid vs. some electric vehicle peers.