Lucid Group achieves record Q3 deliveries, but stock performance has been disappointing.

From Nasdaq: 2024-10-08 09:18:00

Lucid Group (LCID) achieved a new record for vehicle deliveries in Q3 2024, delivering 2,781 vehicles, totaling a record-breaking 7,142 units so far this year. Lucid is offering discounts of up to $17,500 to drive sales. The company is set to launch its electric SUV, Gravity, later this year, diversifying its lineup and competing with Tesla.

Lucid plans to introduce a mid-size electric crossover by 2026, priced under $50,000, and is backed by Saudi Arabia’s Public Investment Fund. The company has set ambitious growth plans and aims to compete effectively with Tesla. However, production numbers remain a concern, and the company’s heavy reliance on external funding could pose risks.

Despite breaking delivery records, Lucid’s stock performance has been disappointing, dropping nearly 85% in the past three years. The company’s current price-to-sales ratio is higher than Rivian’s, making it a potentially risky investment. While Lucid has shown potential for growth, red flags like ongoing cash burn and production struggles may deter some investors. The stock currently carries a Zacks Rank of 3 (Hold).



Read more at Nasdaq: Lucid Logs Record Q3 Deliveries: Is This Penny Stock a Buy Now?