Lucid Motors (NASDAQ:LCID) stock tumbled 14% yesterday after the electric vehicle (EV) maker reported a higher-than-expected net loss. Investment bank Stifel responded to the news by cutting its price target on LCID stock to $3 from $4. Two other banks were also generally unenthusiastic about the company’s first-quarter data and outlook.
Lucid, however, did report some positive news. But investors appear to have been spooked by the firm’s bottom-line miss.
Lucid’s Q1 Results
Lucid’s Q1 performance was mixed. The company’s revenue rose almost 16% versus the same period last year to $172.7 million. On average, analysts had only expected the top line to come in at around $150 million. However, Lucid still generated a loss per share of 30 cents, well above analysts’ mean outlook for a loss of 25 cents per share.
On another positive note, Lucid reported that it still intends to kick off deliveries of the upcoming Gravity SUV by the end of 2024. The firm also reiterated its 2024 production guidance of 9,000 EVs this year.
Banks Are Underwhelmed
Stifel responded to the results by slashing its price target on LCID stock to $3 from $4. Analyst Stephen Gengaro maintained a “hold” rating on shares.
Meanwhile, Evercore ISI wrote that Lucid’s Q1 results were “generally in line” and warned that LCID stock is “still far away from being a near-term investable story.” Evercore believes that the company’s brand awareness remains weak. The firm kept a $2 price target on LCID and an “in line” rating on shares.
Finally, RBC Capital suggested that some investors may have expected Lucid to raise its 2024 guidance. The bank believes Wall Street is more interested in the outlook for the Gravity than the Q1 performance.
Lucid believes the Gravity’s total addressable market (TAM) is six times higher than its current EVs. RBC kept a $3 price target on LCID and a “sector perform” rating, per Investing.com.
The Price Action of LCID Stock
Heading into today, shares of this EV maker are little changed over the last month. However, LCID stock has fallen 22% in the last three months and more than 35% so far this year.
On the date of publication, Larry Ramer 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
