Lucid Group (NASDAQ:LCID) stock fell nearly 6% overnight after the electric vehicle (EV) firm trimmed its production forecast for 2023. This news comes in direct contrast with U.S. rival Rivian Automotive (NASDAQ:RIVN), which actually raised its full-year production forecast.
A maker of luxury EVs, Lucid lost $631 million during the quarter, or 28 cents per share, on revenue of $137.8 million. Lucid also produced just 1,550 vehicles for the quarter and estimated that it will make from 8,000 to 8,500 vehicles for all of 2023.
LCID stock opened at $4.06 per share today and a market capitalization of around $9 billion on expected 2023 revenue of $773.67 million.
LCID Stock: Earnings Desert Lucid
Lucid is known for the Lucid Air, a luxury EV priced at about $75,000. The company’s majority shareholder is Saudi Arabia’s Public Investment Fund (PIF).
That support will continue, as Lucid opened a production plant in Saudi Arabia during the quarter. The country appears to be building a network of car brands around Lucid, wanting to make Lucid’s power train and battery design a global platform.
Indeed, Saudi Arabia’s PIF is now the second-largest owner of Aston Martin (OTCMKTS:AMGDF). The country’s Ministry of Investment has also invested heavily in China-based EV firm Human Horizons. Lucid CEO Peter Rawlinson predicted this past summer that there will be more such deals.
At some point, however, Lucid needs to make money. Recently, the firm took a step in that direction by naming Marc Winterhoff as its first Chief Operating Officer. Winterhoff will be working under Rawlinson and joined the company from Roland Berger, an industry consultant.
Last month, InvestorPlace reported that Lucid is losing $338,000 per car. The financial results were in line with that. Currently, there are 10 analysts following Lucid as tracked by TipRanks and they are almost evenly split among buy, sell and hold camps. The bears have been the winners so far in 2023, with LCID stock down 35% year-to-date (YTD).
What Happens Next?
Despite the bad numbers, Lucid isn’t going away. Saudi Arabia is determined to be a player in the global EV race — and Lucid is the horse they’re betting on.
On the date of publication, Dana Blankenhorn 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.
