Lucid stock plummeted after missing delivery and revenue targets, but may rebound with expansion plans

From Nasdaq: 2024-05-05 14:42:27

Lucid (NASDAQ: LCID) gained attention as a luxury EV maker led by a former Tesla executive. However, it missed delivery and revenue targets after going public via SPAC, blaming supply chain issues and delays in new model launches. Stock prices plummeted but may rebound as it plans to expand production, backed by Saudi government support.

While Lucid’s future production goals seem ambitious, analysts doubt it will reach 500,000 vehicles by 2025. Revenue forecasts remain high, driven by the launch of the Gravity SUV and Saudi government backing. Cash burn rates are concerning, and without significant improvements, the stock may languish or decline in the next three years.

Before investing in Lucid Group, consider that analysts did not include it in their top 10 stock picks. Other EV makers like Rivian and Nio are producing more vehicles and may offer better investment opportunities. Stock Advisor’s track record includes significant returns compared to the S&P 500, making their recommendations worth considering for long-term growth.



Read more at Nasdaq: Where Will Lucid Stock Be in 3 Years?