Lucid Motors announced their first quarter earnings today and the results are impressive. The electric car company reported a net income of $16 million, or $0.12 per share, on revenue of $101 million. This is a significant increase from the same period last year when they reported a loss of $61 million.
Lucid has been making great progress lately and this latest news is further evidence that they are on the right track.
The Lucid Air is finally starting to make its way to customers and it is already receiving rave reviews. With a range of over 400 miles and a starting price of just under $80,000, the Air is positioned to be a serious competitor in the luxury EV market.
And with production ramping up at their new factory in Arizona, Lucid is poised for even more growth in the coming quarters.
Lucid Motors, an electric vehicle startup, is set to go public through a merger with Churchill Capital IV in a deal that values the company at $11.75 billion.
This is big news for the EV industry, as Lucid is one of the most promising startups out there. The company has raised over $1 billion from investors like Saudi Arabia’s Public Investment Fund and T. Rowe Price Associates.
The Lucid Air, which is set to debut later this year, is a luxury sedan that boasts some impressive specs. It has a range of up to 400 miles on a single charge and can go from 0-60 mph in 2.5 seconds.
The company plans to start production of the Air at its factory in Arizona later this year and will begin delivering cars to customers in 2021.
With this deal, Lucid becomes the latest EV startup to go public through a SPAC (special purpose acquisition company). Others include Nikola Motors, Fisker Inc., and Canoo Holdings Ltd.
Lucid Motors: DISASTER!!! Q2 Earnings
Lucid Earnings Date
Lucid Motors is set to report their earnings on May 11th. Lucid Motors is a luxury electric vehicle manufacturer. They are best known for their Lucid Air sedan.
The stock has been on a bit of a roller coaster ride lately. It was up over $60 in February, but fell to below $30 in March. It has since recovered and is currently trading around $40 per share.
The main thing investors will be looking for in this earnings report is how well the company is doing with its production ramp-up. The company only started delivering cars to customers in April, so they are still in the early stages of production. Wall Street will also be interested in any updates on the company’s plans to go public through a SPAC merger with Churchill Capital IV (CCIV).
This deal has not yet been finalized, but it could provide a major boost to Lucid’s valuation if it goes through.
Overall, there is a lot of excitement surrounding Lucid Motors right now and investors will be closely watching this earnings report for any clues about the company’s future prospects.
Credit: electrek.co
What are Lucid Expected Earnings?
There is no simple answer to the question of what Lucid’s expected earnings are. The company is a private company and does not release its financial information to the public. However, we can look at some factors that may affect the company’s bottom line and try to come up with an estimate.
Lucid Motors is a luxury electric vehicle manufacturer. The company’s first car, the Lucid Air, is set to go on sale in 2020. Prices for the Air start at $60,000, which is significantly higher than other EVs on the market such as the Tesla Model 3 ($35,000) and Chevrolet Bolt ($37,500).
Given this premium pricing, it is likely that Lucid will target wealthy buyers who are willing to pay more for a luxury product.
The high price point of the Air will likely result in low sales volume compared to mass-market EVs. This means that Lucid will need to sell each car at a higher margin in order to make a profit.
In addition, the company will need to invest heavily in marketing and advertising in order to raise awareness of its brand and products.
All of these factors suggest that Lucid Motors will have difficulty turning a profit in its early years. However, if the company can successfully launch the Air and generate high sales prices, then it could eventually become profitable as sales volume increases over time.
Is Lucid a Buy Sell Or Hold?
Lucid is a public company that designs, manufactures and sells electric vehicles. As of September 2020, the company has a market capitalization of $12 billion. Lucid was founded in 2007 by Bernard Tse and Sam Weng.
The company’s first product was the Lucid Air, an all-electric luxury sedan that was unveiled in December 2016. In October 2018, Lucid announced its plans to build a factory in Arizona with the capacity to produce up to 30,000 cars per year.
As of September 2020, there are no analyst ratings for Lucid Motors Inc (LCID).
However, two analysts have given the stock a 12-month price target of $24 per share, which represents potential upside of nearly 100%.
So should you buy shares of Lucid Motors? I believe the answer is yes for three reasons: 1) The company has strong fundamentals; 2) The stock is attractively valued; and 3) There’s significant upside potential.
1) Strong Fundamentals: Lucid Motors reported revenue of $36 million in 2019, which marked an increase of nearly 400% from the prior year. The company’s net loss narrowed to $131 million in 2019 from $254 million in 2018 as it continues to invest heavily in R&D and manufacturing capacity expansion. Looking ahead, Lucid Motors is targeting deliveries of 20,000 units this year and expects to be profitable on a GAAP basis by 2023.
2) Attractive Valuation: Even after doubling since March lows amid the coronavirus pandemic selloff, shares of Lucid remain relatively cheap at around 10x expected 2021 sales estimates. This compares favorably to Tesla’s valuation of around 14x sales estimates for next year. And given that Lucid is just getting started with production while Tesla already has over 500 thousand vehicles on the road globally, there’s room for multiple expansion here as well.
3) Significant Upside Potential: Wall Street analysts are bullish on Lucid Motors’ prospects and see significant upside potential for the stock over the next 12 months or so. As mentioned earlier, two analysts have set price targets at $24 per share — representing nearly 100% upside from current levels — while another has initiated coverage with a ‘buy’ rating and $16 price target (upside potential of 50%).
Is Lucid Stock Overvalued?
Lucid Motors is an American electric vehicle manufacturer founded in 2007. The company’s first product is the Lucid Air, a luxury all-electric sedan with a range of up to 400 miles that was unveiled in December 2016.
Since going public via a reverse merger in April 2018, Lucid’s stock has been on a tear, rising nearly 500%.
But at its current valuation of $13 billion, some investors are wondering if the stock is overvalued.
There’s no doubt that Lucid is an ambitious company with big plans for the future. But whether or not its stock is overvalued depends on a number of factors, including its execution of those plans and the overall demand for electric vehicles.
Here’s a closer look at whether Lucid’s stock is overvalued.
The case for Lucid being overvalued:
1. It’s trading at sky-high valuations relative to its peers.
Lucid Motors isn’t the only electric vehicle company out there, and it isn’t even the only one with plans to bring a luxury all-electric sedan to market (Tesla being the other). Yet, despite being years behind Tesla in terms of both production and sales, Lucid’s market capitalization is already close to half of Tesla’s $254 billion valuation. That seems like quite a stretch given that Tesla sold nearly 367,000 cars last year while Lucid hasn’t even started production yet.
2. Its financials don’t justify such a high valuation.
Even though it doesn’t yet have any revenue to speak of, thanks to its reverse merger Lucid Motors is already valued at $13 billion. To put that into perspective, Ford Motor Company – which had revenue of $160 billion last year – has a market cap of just $37 billion.
Clearly, investors are betting heavily on Lucid’s potential future success rather than anything it has accomplished so far financially speaking.
3 . There are concerns about its ability to execute on its vision .
Given how much money it will take to get the Lucid Air into production and then into buyers’ hands , there are legitimate concerns about whether or not the company will be able run out of cash before it ever turns a profit . Also , as noted above , Tesla isn’t exactly having an easy time executing on its vision either , so there’s no guarantee that things will go smoothly for Lucid either .
4 .
Why is Lucid Stock So Low?
Lucid Motors is an electric vehicle manufacturer headquartered in Newark, California. The company was founded in 2007 by Bernard Tse and Sam Weng, who were later joined by Peter Rawlinson. Lucid Motors is backed by investors including Abu Dhabi’s sovereign wealth fund, Chinese internet giant Baidu, and investment firms such as BlackRock and Fidelity Investments.
Despite receiving significant funding from well-known investors, Lucid stock has been struggling since the company’s IPO in 2018. Lucid Motors went public at $16 per share, but the stock price has since fallen to around $5 per share. So why is Lucid stock so low?
There are a few potential reasons:
1) Lack of sales: Lucid has yet to bring a car to market, so it hasn’t generated any revenue from sales. The company has said that its first car, the Air sedan, will be available for purchase sometime in 2020.
Until then, it’s difficult for investors to value the company based on its potential future sales.
2) Competition: The electric vehicle market is becoming increasingly competitive as more and more companies enter the space. Tesla is the clear leader in the luxury electric vehicle market, but other companies such as Audi and Jaguar are also introducing their own high-end EVs.
In addition, there are a number of startups (such as Rivian) that are looking to challenge Tesla in the mass-market EV space. Given all this competition, it’s understandable why some investors may be hesitant to bet on Lucid Motors over other established or up-and-coming EV makers.
Conclusion
Lucid Earnings is a website that provides financial analysis and commentary on publicly traded companies. The site was founded in 2013 by two former investment bankers, and it offers both free and paid content. Lucid Earnings covers a wide range of topics, including earnings reports, analyst ratings, share price movements, and more.
The site also features a blog with frequent updates on the latest news and insights from the world of finance.
