Electric vehicle (EV) manufacturer Lucid Group (NASDAQ:LCID) revealed third-quarter results yesterday. Now today, LCID stock traders don’t seem particularly pleased. For one thing, Lucid’s top- and bottom-line results missed Wall Street’s expectations. However, investors are also unhappy with the number of vehicle reservations reported by the company.
This isn’t to suggest that all of the news from the report was bad. Lucid Group CEO Peter Rawlinson proudly pointed out that the company “made significant progress toward achieving our 2022 production target of 6,000-7,000 vehicles.”
Thus, Lucid didn’t change its full-year 2022 EV production objective of 6,000 to 7,000 vehicles, which was stated previously in August. Furthermore, Rawlinson touted Lucid’s “ability to produce 300 cars a week.”
Yet, Lucid’s rapid production capacity doesn’t seem to be enough to impress investors today. Production doesn’t mean much if Lucid Group isn’t selling many vehicles. So, investors were disappointed to find out that the company’s EV reservations totaled 34,000. That’s lower than the August tally of 37,000 reservations.
What’s Happening With LCID Stock?
Clearly, investors don’t like Lucid’s quarterly results, or the drop in its EV reservation count. Now, they’re dumping shares quickly, sending LCID stock more than 16% lower this morning.
Unfortunately, sales and income data didn’t measure up to Wall Street’s estimates, either. Specifically, the company generated $195 million in Q3 2022 revenue. Analysts had expected $209 million for the period. They had also modeled for a quarterly earnings loss of 31 cents per share. Lucid Group did worse than that, showing a loss of 40 cents per share.
Nonetheless, Lucid Group’s management is maintaining an upbeat tone. In the report, CFO Sherry House revealed that Lucid plans “to open reservations for Project Gravity SUV in early 2023,” which the company believes “will unlock a very large and incremental addressable market.”
That’s all well and good. But LCID stock traders are still in a selling mood today. It remains up to this EV maker to demonstrate that it is, indeed, making “significant progress.”
On the date of publication, David Moadel did not hold (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.