LCID Stock Alert: Lucid Motors Shakes Off SEC Investigation

  • The U.S. Securities and Exchange Commission (SEC) has closed its investigation into Lucid’s (LCID) business combination with Churchill Capital Corp IV.
  • The electric vehicle (EV) company will report its first-quarter earnings on May 8.
  • LCID stock is up more than 20% year-to-date (YTD).
Closeup of the Lucid logo seen at a Lucid showroom in Millbrae, California. LCID stock.
Source: Tada Images / Shutterstock

Shares of Lucid (NASDAQ:LCID) stock are in the green today after the electric vehicle (EV) company disclosed that the U.S. Securities and Exchange Commission (SEC) had closed its special purpose acquisition company (SPAC) investigation against Lucid. Back in December 2021, Lucid received a subpoena from the SEC related to its business combination with Churchill Capital Corp IV. The subpoena requested information related to the company’s future projections and statements.

Now, the investigation has been fully closed, removing a major overhang for LCID stock. The SEC also noted that it does not intend to recommend any enforcement action against Lucid.

The close of this investigation comes at a good time. Lucid is slated to report its first-quarter earnings on May 8 after the market close. Let’s get into the details.

LCID Stock: SEC Ends Investigation Into Lucid

For Q1, analysts are estimating revenue of $212 million, up by 266.76% year-over-year (YOY) but down from Q4 revenue of $258 million. Profitability still remains out of reach for Lucid as well; analysts forecast a GAAP EPS loss of 36 cents and an adjusted EPS loss of 41 cents. In fact, analysts forecast negative annual EPS for the company all the way until 2025. Further estimates are not immediately available. For full-year 2023, analysts expect revenue of $1.365 billion and an adjusted EPS loss of $1.44.

In Q4, Lucid guided for 2023 production of between 10,000 and 14,000 vehicles. This came in well below the analyst estimate for between 20,000 and 22,000 vehicles.

Last month, LCID stock was also mentioned by InvestorPlace contributor Faisal Humayun as a possible short squeeze candidate:

“From a long-term perspective, Lucid is building base for global presence. The company’s first model is being sold in the U.S. and multiple European countries through online booking. Further, Lucid has an agreement with the Saudi government to deliver 100,000 EVs through 2030. Possible expansion in China in the next 12 to 24 months will be another upside catalyst.”

Based on the most recent data, there were 143.4 million shares of LCID sold short as of April 15. That equates to a significant short interest as a percentage of float of 21.3%. Generally, a short interest above 10% is considered high while a short interest above 20% is considered extremely high.

On the date of publication, Eddie Pan 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 Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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