Insights

Why Lucid Stock Is Dropping Ahead of Earnings

What happened
Luxury electric vehicle (EV) maker Lucid Group (NASDAQ: LCID) reports first-quarter earnings after the market close today, but investors aren’t waiting for that to sell the stock. Amid a general market sell-off Thursday, Lucid shares are near the day’s low, down 8.1%, as of 12:50 p.m. ET. 

So what
The first quarter was full of headwinds for many companies, and that’s particularly difficult for early-stage manufacturers like Lucid. Rising raw material costs, supply chain delays, and inflation affecting consumers all make ramping up the business more difficult. Investors will watch what Lucid has to say today about production, vehicle reservations, and its recent deal with the government of Saudi Arabia for up to 100,000 EVs.

Image source: Lucid Group.

Now what
After beginning production in late 2021, Lucid delivered 125 vehicles as of the end of the year, and a total of 400 as of Feb. 28, 2022. The company said it had reservations for more than 25,000 electric Air sedans as of that date. That represents potential revenue of over $2.4 billion. 

But the supply chain challenges it is facing caused it to reduce its target production volume for 2022 to a range of 12,000 to 14,000 vehicles. Investors will want to watch how the reservations have progressed, as well as any updates on its production plans. Lucid ended 2021 with installed annual production capacity of 34,000 vehicles. 
If it has made progress in navigating the restrictions caused by supply chain constraints and increases its 2022 production estimates, the stock will likely react strongly. But for today, with the overall market slumping, Lucid shares are heading lower ahead of what the company says tonight. 
Howard Smith has positions in Lucid Group, Inc. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. –

What happened

Luxury electric vehicle (EV) maker Lucid Group (NASDAQ: LCID) reports first-quarter earnings after the market close today, but investors aren’t waiting for that to sell the stock. Amid a general market sell-off Thursday, Lucid shares are near the day’s low, down 8.1%, as of 12:50 p.m. ET. 

So what

The first quarter was full of headwinds for many companies, and that’s particularly difficult for early-stage manufacturers like Lucid. Rising raw material costs, supply chain delays, and inflation affecting consumers all make ramping up the business more difficult. Investors will watch what Lucid has to say today about production, vehicle reservations, and its recent deal with the government of Saudi Arabia for up to 100,000 EVs.

Image source: Lucid Group.

Now what

After beginning production in late 2021, Lucid delivered 125 vehicles as of the end of the year, and a total of 400 as of Feb. 28, 2022. The company said it had reservations for more than 25,000 electric Air sedans as of that date. That represents potential revenue of over $2.4 billion. 

But the supply chain challenges it is facing caused it to reduce its target production volume for 2022 to a range of 12,000 to 14,000 vehicles. Investors will want to watch how the reservations have progressed, as well as any updates on its production plans. Lucid ended 2021 with installed annual production capacity of 34,000 vehicles. 

If it has made progress in navigating the restrictions caused by supply chain constraints and increases its 2022 production estimates, the stock will likely react strongly. But for today, with the overall market slumping, Lucid shares are heading lower ahead of what the company says tonight. 

Howard Smith has positions in Lucid Group, Inc. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US & HK* Trades. Click Here!