Lucid Earnings: Affordable Model, Path to Profitability, and Reverse Stock Split
Written by Cláudio Afonso | Info@claudio-afonso.com | LinkedIn | X
The electric vehicle (EV) startup Lucid Motors is set to report its first quarter financial results on May 6 as shareholders seek for signs of higher demand and an increase of the annual production target.
In the first quarter, the EV maker produced 1,728 units of its Air luxury sedan with deliveries reaching 1,967 vehicles.
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In February, Lucid said that its production guidance for this year was “approximately 9,000” units, which would represent a slight increase from the 8,428 vehicles produced in 2023.
With the stock price hitting a new all time low earlier this week at $2.29 per share, the start of the deliveries of its second model Gravity later this year is seen as a crucial moment for the company.
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As of today, there are 360 questions published on the platform Say which Lucid (and several companies like Tesla or Polestar) use to gather institutional and retail shareholders’ questions. The most upvoted ones will be answered in the earnings conference call by Lucid’s chief executive Peter Rawlinson and the leadership team.
With over 1,800 participants representing more than 2.22 million shares, shareholders are primarily concerned about the company’s path to profitability questioning the business strategy to reduce costs and achieve positive gross margins.
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Topics such as the launch of an affordable model, potential sources of revenue by selling its battery technology or motors to other automakers or the share price are also among the most upvoted so far.
| 1. Can you elaborate on Lucid’s pathway to profitability? What are the key milestones and challenges the company anticipates facing in reducing production costs and achieving positive gross margins? |
| 2. Will Lucid make an affordable car to compete with Tesla? |
| 3. Is Lucid in talks with any of the legacy automakers to provide battery or motors for production? |
Other questions include Lucid’s product strategy towards “customer desires” and also the marketing strategy to generate brand awareness and increase sales. Below is the rest of the top-10 of questions in the platform as of today.
| 4. The stock price keeps dropping, what measures will you be employing to bring the price up considerably? It seems product output is still extremely low. |
| 5. What is the outlook for 2025 on sales and have you given any thought to shifting the technological breakthroughs of Lucid into a different platform that is more in line with customer desires? |
| 6. Do you have any plan for reverse split in 2024? |
| 7. What are the plans for marketing to increase sales business? |
| 8. Are there plans for an affordable electric vehicle from Lucid? If so, what’s the roadmap for it? |
| 9. Lucid seems to be a car only for the rich, do yall plan to make an affordable car that most can afford. |
| 10. How’s the progress of the company doing by the market now? Many people have lost money at this time. |
Citi recently resumed coverage of Lucid Motors’ shares with a neutral rating and $2.90 price target. The firm emphasises Lucid’s “strong” electric vehicle (EV) technology although it raises concern on the execution risk for the upcoming model planned for late 2024 Gravity.
Last week, Lucid Motors signed a partnership with the electric vehicle (EV) charging company Wallbox to provide chargers to its European customers.
Written by Cláudio Afonso | Info@claudio-afonso.com | LinkedIn | X
