What to do with Lucid stock after earnings? Analysts answer

For investors eyeing Lucid stock, the post-earnings landscape presents a crucial juncture. 

With market sentiment wobbling in response to its latest quarterly report, with the stock down over 10% Tuesday, many are left wondering what's next for Lucid Motors (NASDAQ:LCID) and its stock? 

Lucid earnings breakdown

Lucid Group reported a first-quarter loss per share of ($0.30), $0.05 worse than the analyst estimate of ($0.25) after the close on Monday. Meanwhile, revenue for the quarter came in at $172.7 million, missing the consensus estimate of $173.57 million.

The company produced 1,728 vehicles in Q1 and said it is on track for annual production of approximately 9,000 vehicles. In addition, it delivered 1,967 vehicles in the quarter, up 39.9% compared to Q1 2023.

In the first quarter, the company also raised $1 billion in financing via a private placement to an affiliate of the PIF. 

"We continue to make significant progress on our cost optimization programs," said Gagan Dhingra, Lucid’s Interim Chief Financial Officer in the earnings release. "We're focused on significant growth as we enter the next transformational phase of Lucid's end markets while simultaneously driving cost discipline."

Lucid stock outlook for 2024

Reacting to the latest quarterly report from Lucid, RBC Capital analysts questioned whether some investors were expecting an upward guidance revision, with the stock having risen 10% heading into the print. 

Assessing the company’s deliveries, RBC said that annualizing the 1,967 first-quarter delivery total would result in a 7,900 level. 

“We believe the Q1 financials are of less concern,” stated the firm. “Focus is on demand for the Gravity SUV, which management believes has a 6x TAM vs its sedans. Further, the company was able to secure $1B in financing from an affiliate of PIF, bringing liquidity to $5B at the end of Q1.”

RBC Capital maintained its Sector Perform rating and $3 per share price target on Lucid. 

Elsewhere, Evercore ISI kept an In line rating and a $2 per share price target on the stock. The firm said the “harsh reality” for the company will continue. 

“The details of Q1 were generally in line, while the big surprise came as further timing details emerged of ‘late-’26 SoP’ for the ‘mid-size platform,’ which is what Lucid will need to eventually see scaled volumes and further brand adoption (starting price ~$48k),” said Evercore. 

Despite noting some positives, Evercore says “LCID’s stock is still far away from being a near-term investable story.”

They believe the first quarter did little to answer the question regarding what to do with the stock. 

While they note that Gravity is an attractive premium product at under an $80k starting price for a luxury SUV, the firm says LCID’s volume issues have never been about quality, and they "remain unconvinced the brand awareness is where it needs to be.”

“It’s hard to get bullish," stated Evercore. "On the other hand, LCID has key advantages of 1) strategic partner in PIF (owns 60%+&likely grows stake over time), meaning bankruptcy/liquidity risk is minimal&2) a valuation floor given technology/IP, leaving the equity in limbo (stock flattish YTD).”