Lucid Motors (LCID) Stock Trades Choppily Ahead of Earnings

  • Shares of Lucid Motors (LCID) stock are experiencing volatility ahead of the company’s earnings report.
  • Lucid is expected to report earnings after the bell, posting losses of 39 cents per share on revenues of $204 million.
  • However, investors will clearly be paying closer attention to reservation and production forecasts.
LCID stock - Lucid Motors (LCID) Stock Trades Choppily Ahead of Earnings

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There are plenty of high-growth electric vehicle (EV) names that investors are keeping their eye on right now. However, today’s move in Lucid Motors (NASDAQ:LCID) and LCID stock suggests that perhaps there’s more on the line for this smaller player in the higher-end EV segment.

Shares of LCID stock lost around 6% of their value at their intraday bottom this morning, as investors appear to remain cautious heading into its earnings report. The company is set to report earnings after the bell today, with a wide range of expectations creating uncertainty for investors. And, as we know, uncertainty is often not an investor’s friend, at least in the short term.

As the broader markets continue to gyrate around the flatline today, it will certainly be interesting to see where LCID stock closes. At the time of writing, LCID stock has made up its morning’s losses and has joined the broader markets around the flatline.

Let’s dive into what investors should watch for in the company’s upcoming earnings report.

What to Watch as LCID Stock Sees Volatility Ahead of Earnings Report

For many investors, the key focus for Lucid’s earnings report won’t be production volumes or the company’s ramp-up. Rather, analysts and experts appear to be paying closer attention to the company’s order backlog, which represents demand for its higher-priced EVs.

Given the ongoing price war among electric vehicle makers, spurred by a swath of price cuts from industry leader Tesla (NASDAQ:TSLA), significant concern has been building around Lucid and other higher-priced options in the market. If Tesla can take market share away from such companies, it could be game over for the likes of Lucid over the medium term. At least, that’s the bullish narrative many Tesla fanboys are pushing right now.

Wall Street has set the bar for Lucid at a relatively low level, with the company expected to post a loss of 39 cents per share on revenues of a little more than $200 million. Thus, if the company’s production ramp-up successfully blows these numbers away, that could drive a pop in its stock price, at least over the near term.

That said, I think the company’s forward guidance on production and its anticipated order backlog will likely be more meaningful for analysts and investors looking to update their models. Currently, Lucid expects to produce between 10,000 and 14,000 vehicles, which is a far cry from Wall Street estimates of 20,000 to 22,000 previously. Additionally, during its last earnings report, a previous reservation cut from 34,000 units to 28,000 units did not spur confidence in this stock.

On the date of publication, Chris MacDonald 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 Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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