Why EV Lucid (LCID) Stock is Sharply Down Today

March 1, 2022 7:02 AM EST
Get Alerts LCID Hot Sheet
Price: $17.00 -0.93%

Rating Summary:
    4 Buy, 2 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 4 | Down: 13 | New: 10
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Shares of the electric vehicle maker Lucid (NASDAQ: LCID) are down nearly 13% in premarket trading Tuesday after the EV startup lowered its 2022 EV production guidance.

Lucid reported a Q4 loss per share of 64 cents on revenue of $26.4 million. Adjusted EBITDA loss in the fourth quarter was reported at $299.6 million, while net loss totaled $1.05 billion.

For FY2022, Lucid lowered its production target to 12,000 - 14,000 from the previous guidance of 20,000, citing significant supply chain challenges.

The company said production exceeded 400 vehicles as of February 28, with 125 deliveries as of 2021 year-end and more than 300 deliveries to date. The number of customer reservations now stand at over 25,000, Lucid said.

"Lucid aspires to be a catalyst for change wherever we go, so it makes perfect sense that we are bringing electric vehicles to one of the world's biggest oil producing nations. Establishing a global manufacturing footprint is a practical, natural step and enables us to grow our brand, scale our business, and address worldwide and untapped market demand on an entirely new level, while also taking action to address climate change through inspiring sustainable transportation," said Peter Rawlinson, CEO and CTO of Lucid Group.

Citi analyst Itay Michaeli lowered the price target to $45.00 per share from the prior $57.00.

“Q4 loss/FCF burn better than our model, but the 2022 Air production guide (12-14k vs. 20k originally) was well-below expectations, while the launch of the Gravity was pushed back slightly to H1 2024 from end-of-2023…Constraints should be largely confined to H1, and with the slow Jan/Feb start, our sense is that H2 production could reach levels consistent with a ~20k annual rate,” Michaeli wrote in a memo to clients.

BofA analyst John Murphy is more positive after a “good” quarter. He continues to see the company as “the Tesla/Ferrari of new EV automakers.” Murphy added that “LCID currently has more pieces of the puzzle in place and in process than most of its start-up EV automakers peers.”

“As a reminder, 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 (EV) automakers and also a relative competitive threat to the universe of incumbent automakers,” Murphy said in a client note.

By Senad Karaahmetovic | [email protected]

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