TLDR
- Lucid Group stock traded up 2.1% on Monday to $2.20, with reduced trading volume of 32.9 million shares
- First quarter revenue jumped 36% year-over-year to $235 million despite missing analyst estimates of $250.5 million
- Vehicle deliveries increased 58% to 3,109 units in Q1, though revenue remains below 2022 peak levels
- Analysts maintain mostly “hold” ratings with consensus price target of $2.68, ranging from $1.00 to $3.00
- Potential legislative changes could benefit smaller EV makers like Lucid while removing incentives for larger competitors
Lucid Group shares climbed 2.1% during Monday’s trading session, closing at $2.20 after hitting an intraday high of $2.22. The electric vehicle manufacturer saw trading volume drop to 32.9 million shares, down 57% from the average daily volume of 75.9 million shares.
The stock movement comes as the company continues to navigate a challenging period in the electric vehicle sector. Lucid’s shares have declined 78% since the company went public in 2021, reflecting broader struggles in the EV market.
First quarter results showed mixed performance for the luxury electric vehicle maker. Revenue increased 36% year-over-year to $235 million, driven by a 58% jump in vehicle deliveries to 3,109 units. However, the quarterly revenue figure fell short of analyst estimates of $250.5 million.
The company reported an earnings per share loss of $0.24, slightly worse than the consensus estimate of $0.23. This represents an improvement from the $0.27 loss per share recorded in the same quarter last year.
Despite the revenue growth, Lucid’s quarterly sales remain below peak levels. The company reached its highest quarterly revenue of $257.7 million in the fourth quarter of 2022. Since then, the business has struggled to maintain consistent growth momentum.
Analyst Sentiment Mixed
Wall Street analysts maintain a cautious stance on Lucid Group. The stock currently holds an average rating of “hold” with a consensus price target of $2.68. This target suggests modest upside potential from current levels.
Recent analyst activity shows varied opinions on the company’s prospects. Stifel Nicolaus lowered their price target from $3.50 to $3.00 while maintaining a hold rating. Bank of America downgraded the stock from neutral to underperform, cutting their price target from $3.00 to $1.00.
Conversely, Morgan Stanley upgraded Lucid from underweight to equal weight with a $3.00 price target. Robert W. Baird raised their price objective from $2.00 to $3.00 while keeping a neutral rating.
The analyst community appears split, with two sell ratings, eight hold ratings, and two buy ratings currently outstanding. This distribution reflects uncertainty about the company’s near-term prospects.
Political Landscape Creates Opportunities
The broader electric vehicle industry faces potential changes from legislative developments. Republican lawmakers are advancing the “Big Beautiful Bill” which would eliminate the $7,500 federal tax credit for electric vehicle purchases.
Bank of America analyst John Murphy suggests the current legislative language may create exceptions for smaller EV manufacturers like Lucid and Rivian. This could provide a competitive advantage over larger rivals including Tesla, Ford, and General Motors.
Tesla’s recent struggles may present opportunities for competitors like Lucid. The company’s European sales dropped 37% year-over-year to 54,020 units, while U.S. sales declined 8.6% to 128,100 units.
Lucid’s flagship Air Sedan starts at $71,400, positioning it in the luxury segment. The company plans to expand into more accessible markets with the Lucid Earth SUV, expected to launch in late 2026 with a starting price around $50,000.
Institutional investors continue to adjust their positions in the company. Recent filings show mixed activity, with some funds increasing stakes while others reduce exposure. Institutional ownership stands at 75.17% of outstanding shares.
The company maintains a market capitalization of $6.8 billion with a current ratio of 3.71 and quick ratio of 3.26. These metrics suggest adequate liquidity to fund operations in the near term.
Lucid Group reported a negative net margin of 406.63% and negative return on equity of 74.67% in the most recent quarter. Analysts forecast an earnings per share loss of $1.25 for the current fiscal year.
