LCID Stock: There’s a $1.3B Reason Lucid Motors Is Revving Up Today

Shares of Lucid Group (NASDAQ:LCID) are trading higher by 9% after the company reported Q3 financial results. The electric vehicle (EV) maker announced that it had more than 17,000 reservations for its Air model, up from 13,000 during Q3. These reservations represent an estimated order book of over $1.3 billion, which is well above investors’ expectations.

The Lucid Motors (LCID) Plant in Arizona.
Source: Around the World Photos / Shutterstock.com

Looking forward, Lucid confirmed its 20,000 vehicle production plan for 2022. The company also has plans to expand its facilities to increase production output. However, LCID stock is by no means cheap, especially for a company with barely any sales. The stock price can be explained by future potential, speculation and riding the tailwinds of the EV boom. Investors are also valuing Lucid as a technology company, and not solely as a car company. Lucid CFO Sherry confirmed this during a call with Wall Street analysts: “I see that we’re being regarded as a technology company with a platform that’s extensible across lots of vehicle variants and sustainable tech.”

What else is going on with LCID stock? Let’s take a look into Lucid’s Q3 highlights.

LCID Stock Q3 Earnings Highlights

  • Lucid announced revenue of $232,000, down from $334,000 year-over-year (YoY).
  • Additionally, the company announced cash on hand of $4.8 billion.
  • Production of customer delivery vehicles started in September.
  • Impressively, Lucid Air won the 2022 MotorTrend Car of the Year.
  • The Lucid Air also received Environmental Protection Agency (EPA) certification as the longest-range production EV.
  • Furthermore, vehicle production kicked off at Lucid’s Advanced Manufacturing Plant (AMP-1) in Arizona.
  • This is important, as AMP-1 has the capacity to deliver an estimated 34,000 vehicles per year.
  • Additionally, the company kicked off its AMP-1 Phase 2 expansion, which will add 2.85 million square feet of production area to AMP-1.
  • AMP-1 is expected to produce 90,000 vehicles per year by the end of 2023.

What’s Next for Lucid?

Lucid Group’s management sees great potential moving forward as the transition from gas to electric vehicles speeds along. However, the 20,000 vehicle production plan for 2022 is “not without risk given ongoing challenges facing the automotive industry, with global disruptions to supply chains and logistics.” Currently, for 2022, Lucid plans to launch its Touring, Grand Touring and Pure versions of the Lucid Air.

Moreover, revenue of $232,000 during the quarter seems extremely low for a company trading at a $77 billion market capitalization. Investors in LCID stock should brace for volatility in the coming months as the EV competition treks along and the company releases more data on bookings and reservations.

On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2021/11/lcid-stock-theres-a-1-3b-reason-lucid-motors-is-revving-up-today/.

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