From Financial Modeling Prep: 2024-07-08 18:05:00

CFRA analyst Garrett Nelson reiterated a Strong Sell rating and set a $1 price target for Lucid Group (NASDAQ:LCID) following the company’s latest delivery report. The 2024 EPS estimate was adjusted slightly higher to -$1.33, with the 2025 estimate unchanged at -$1.25.

Lucid reported Q2 vehicle production and deliveries slightly ahead of estimates at 2,110 units and 2,394 units, respectively. Despite record high quarterly shipments, analysts believe the company still needs to scale up to reduce unit costs sustainably.

Lucid’s high cash burn rate of about $700 million per quarter is a concern. With $4.0 billion in cash and $2.4 billion in total debt at the end of Q1/24, the company faces weak demand for the Lucid Air and unsustainably high unit costs. CFRA maintains a negative view, reaffirming the Strong Sell rating ahead of earnings on August 5.



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