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LCID Stock Dives On Weak Q3 Results, Declining Registrations Investor’s Business Daily

LCID Stock Dives On Weak Q3 Results, Declining Registrations Investor’s Business Daily

Lucid (LCID) reported a weaker-than-expected third quarter late Tuesday after the luxury EV startup announced a sharp ramp in deliveries over that period. LCID stock plunged as vehicles reservations fell.




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Lucid company reported it was still on track to produce its projected 6,000 to 7,000 vehicles in 2022.

But the automaker said it now has 34,000 reservations for its vehicles. That was 37,000.

On Nov. 3, Lucid had announced that it plans to bring relatively more affordable versions of the Lucid Air to market, after disclosing a jump in Q3 deliveries of that luxury, long-range electric sedan.

Goal start-up peer Nicholas (NKLA) warned on Nov. 3 of weaker deliveries of electric vehicles in the current quarter due to worsening economic conditions. Among other EV startups, Rivian (RIVN) and China’s Nio (NIO) are on deck later this week.

Lucid Earnings

Estimates: Analysts polled by FactSet expect Lucid to narrow its net loss per share in Q3 to 31 cents from 43 cents a year ago. Revenue is seen reaching $209.4 million, up from $232,000 a year ago and $97.3 million in Q2.

Results: Lucid reported a slightly narrower loss-per-share of 40 cents. Revenue came in at $195.5 million. Both numbers were below expectations.

The company’s cash holdings dropped to $3.85 billion, down from $4.6 billion at June 30.

Outlook: For the full year, Wall Street expects Lucid to lose $1.01 per share vs. a loss of $6.41 in 2021.

LCID Stock, RIDE Stock, EV Stock

Shares of Lucid dive 13% in after-hours trade, signaling a test of a recent 52-week low. Shares closed down 2.5% to 13.50 on the stock market today. LCID stock has been in a downtrend since December, ending Tuesday more than 76% below its 52-week high.

Rivian, which reports Q3 late Wednesday, rose 1.7% Tuesday. RIVN stock has a bottoming base with a 40.66 buy point.

Nikola stock fell 1.4% after tumbling 7.5% last week on its delivery warning. Fisker (FSR) rose 0.3% after sliding 3.6% last week on a bigger-than-expected Q3 loss.

Lordstown Motors (RIDE) reversed a 25% surge to a 5.4% loss on Tuesday, after announcing an expanded partnership with Taipei-based contract manufacturer Foxconn late Monday, which will see the companies jointly build an electric vehicle. Early Tuesday, Lordstown posted a far worse-than-feared Q3 loss while reaffirming the Q4 start of deliveries of its Endurance electric pickup truck.

Chinese EV startup Nio, which reports Thursday before the open, lost 3.8% Tuesday. Nio stock reversed lower to lose 6% on Monday. NIO stock surged 20.5% last week, but after plunging to a two-year low.

Tesla dropped 2.9% Tuesday. Shares sank 5% Monday, hitting a 17-month low after tumbling 9.2% last week.

Lucid Expanding EV Lineup

On Nov. 15, Lucid will unveil two more affordable versions of its luxury, award-winning Lucid Air electric sedan. The Lucid Air EV has been favorably compared to You’re here (TSLA) cars. It’s sometimes seen as a Model S rival.

The upcoming models will include the $87,400 Lucid Air Pure and $107,400 Air Touring, the company announced on Nov. 3. The Lucid Air Grand Touring model, which is already being sold, costs $154,000 for an EPA-estimated range of 516 miles.

Lucid also plans a luxury SUV, sharing the same proprietary EV technology as the Air.

Lucid Air Production, Deliveries Ramp Up

Preliminary data showed that Lucid produced 2,282 EVs in Q3, more than tripling Q2’s total, the company announced Oct. 12.

Lucid delivered 360 EVs in Q1 and 679 EVs in Q2. Deliveries swelled to 1,398 EVs in Q3 based on preliminary figures. That means LCID will have to keep ramping sharply in the current quarter to meet its lowered target for 2022.

The Saudi-backed startup affirmed Oct. 12 that it remains on track to build and deliver 6,000-7,000 electric vehicles in 2022, after twice cutting production guidance this year. Lucid has struggled amid chip shortages and other supply challenges, tied in part to Covid-19 factory shutdowns in China.

Like other automakers, Lucid confronts multiple other headwinds, from rising interest rates to fears of a global recession.

As of Aug. 3, Lucid reported 37,000 reservations for the Lucid Air.

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