Lucid Group (LCID, Financial) has entered a strategic collaboration with King Abdullah University of Science and Technology (KAUST) to propel advancements in electric vehicle (EV) technology. This partnership will utilize the expanding resources available in Saudi Arabia to bolster Lucid’s standing in technological innovation.
As a key component of this alliance, Lucid will benefit from KAUST's advanced supercomputing infrastructure. The collaboration aims to innovate next-generation vehicle components and systems by integrating mechanical, electrical, thermal, and chemical engineering disciplines. These joint research and development initiatives will take place at KAUST’s state-of-the-art laboratories located in King Abdullah Economic City.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Lucid Group Inc (LCID, Financial) is $2.53 with a high estimate of $5.00 and a low estimate of $1.00. The average target implies an downside of 0.09% from the current price of $2.53. More detailed estimate data can be found on the Lucid Group Inc (LCID) Forecast page.
Based on the consensus recommendation from 16 brokerage firms, Lucid Group Inc's (LCID, Financial) average brokerage recommendation is currently 3.2, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lucid Group Inc (LCID, Financial) in one year is $10.55, suggesting a upside of 317% from the current price of $2.53. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lucid Group Inc (LCID) Summary page.
LCID Key Business Developments
Release Date: February 25, 2025
- Revenue: $234.5 million for Q4 2024.
- Vehicle Production: 9,029 vehicles in 2024, up 7% year over year.
- Vehicle Deliveries: 10,241 vehicles in 2024, up 71% year over year.
- Gross Margin: Negative 114% for 2024, improved from negative 225% in 2023; Q4 2024 gross margin was negative 89%.
- R&D Expenses: Approximately $1.1 billion in 2024, up 26% year over year.
- SG&A Expenses: $901 million in 2024, up 13% year over year.
- Adjusted EBITDA: Approximately negative $577 million for Q4 2024.
- Cash and Liquidity: $5.08 billion in cash, cash equivalents, investments, and equity securities; total liquidity of approximately $6.13 billion.
- Inventory: $407.8 million in Q4 2024, down from $506.8 million in Q3 2024.
- Capital Expenditure: $883.8 million for 2024.
- 2025 Production Forecast: Approximately 20,000 vehicles.
- 2025 CapEx Forecast: Approximately $1.4 billion.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lucid Group Inc (LCID, Financial) achieved four consecutive quarters of record deliveries in 2024, with a significant year-over-year improvement in gross margins.
- The company produced 9,029 vehicles and delivered 10,241 in 2024, marking a record year and establishing Lucid Air as the third best-selling EV in its segment in the US.
- Lucid Group Inc (LCID) successfully launched the Lucid Gravity SUV, with orders exceeding expectations and attracting new customers to the brand.
- The company strengthened its balance sheet with approximately $6.13 billion in total liquidity, including a renewed and upsized GIB credit facility.
- Lucid Group Inc (LCID) plans to produce approximately 20,000 vehicles in 2025, with continued growth expected in 2026 as the Lucid Gravity gains traction in the market.
Negative Points
- Lucid Group Inc (LCID) reported a negative GAAP gross margin of 114% for 2024, although this was an improvement from the previous year.
- The company faces production constraints for the Lucid Gravity, which may limit its ability to meet demand in the initial quarters of 2025.
- Lucid Group Inc (LCID) anticipates potential impacts from regulatory changes and tariffs, which could affect production costs and demand.
- The departure of founder Peter Rawlinson as CEO raises concerns about leadership continuity and strategic direction.
- Despite strong demand, Lucid Group Inc (LCID) remains behind established OEMs in brand awareness, necessitating increased marketing efforts.
