Lucid Group: Poised For Growth (Rating Upgrade)

On the Pulse
14.9K Followers

Summary

  • I am upgrading Lucid Motors from 'Sell' to 'Hold' due to surging deliveries and the positive long-term EV demand outlook.
  • Despite record delivery growth and the upcoming Gravity SUV launch, Lucid remains deeply unprofitable with negative gross margins and ongoing cash burn.
  • Lucid's ambitious 2025 delivery forecast and Gravity production ramp are promising, but the company has a spotty track record on meeting targets.
  • Profitability remains years away; only sustained delivery growth and margin improvement could justify a more bullish stance on the stock.

Lucid Air Grand Touring display. Lucid offers the Air Grand Touring with up to an estimated 516 miles per charge. MY:2022

jetcityimage

In my last piece on Lucid Group, Inc. (NASDAQ:LCID) I defended my ‘Sell’ stock classification for the electric-vehicle company amid serious concerns about the company’s profitability.

Though deliveries have started to surge, and the Lucid Gravity launch could add

This article was written by

14.9K Followers
A financial researcher and avid investor with a keen eye for innovation and disruption, as well as growth buy-outs and value stocks. Keeping an eye on the pace of high tech and early growth companies, I write about current events and the biggest news surrounding the industry, and strive to provide readers with ample research and investment opportunities.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in LCID over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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