Lucid (NASDAQ:LCID) stock is still plunging lower following yesterday’s disappointing third-quarter delivery and production update. During the quarter, the electric vehicle (EV) company delivered 1,457 vehicles and produced 1,550 vehicles. Analysts had forecast for 2,000 deliveries, meaning that Lucid missed the mark by a significant 27%. In addition, Lucid also disclosed that it had 700 vehicles on the way to Saudi Arabia for final assembly. For comparison, the company delivered 1,404 vehicles and produced 2,173 vehicles during the second quarter.
As of Sept. 30, Lucid has produced 6,037 vehicles and delivered 4,267 vehicles this year. That would average out to about 2,000 produced vehicles each quarter, which is short of the company’s 2023 production guidance of 10,000 vehicles. In order to achieve the guidance, Lucid must produce at least 3,963 vehicles during the fourth quarter.
LCID Stock: Bank of America Reiterates $8 Price Target
Following the delivery update, Bank of America reiterated its “neutral” rating and price target of $8 per share of LCID stock. The bank’s analysts noted that, combined with the 700 vehicles on the way to Saudi Arabia, Lucid’s production should actually be between 2,200 and 2,300 vehicles.
“The shipments to Saudi Arabia are a positive development as LCID can soon begin to deliver vehicles to the Saudi government, which agreed on a minimum purchase of 50,000 vehicles,” said the analysts.
However, BofA also noted that Lucid is no where near close to achieving profitability. The firm’s AMP-1 facility is only at about 30% capacity right now, which threatens its production guidance for 10,000 vehicles. This has led the bank to cut its third-quarter revenue estimate to $156 million from $225 million and its adjusted EBITDA estimate to -$704 million from -$816 million.
Lucid will report its third-quarter earnings on Nov. 7 after the bell. Bank of America expects EPS to be a loss of 35 cents, above the analyst consensus estimate for a loss of 38 cents. For the entire year, it forecasts an EPS loss of $1.51 compared to the consensus analyst estimate for a loss of $1.48.
Unlike BofA, CFRA cut its price target on LCID stock to $4 from $7. “We thought the disclosure was extremely disappointing, as LCID posted a sequential drop in volumes from the 2,173 units it produced in Q2 and deliveries were up only slightly from 1,404 units,” said analyst Garrett Nelson. CFRA now estimates an EPS loss of $1.70 for the year.
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 InvestorPlace.com Publishing Guidelines.
