Lucid (LCID, Financial) announced its financial results for the first quarter, reporting revenue of $235 million, slightly below the anticipated $246.16 million. During this period, the company manufactured 2,212 vehicles, not including over 600 units in transit to Saudi Arabia for final processing. The electric vehicle maker delivered 3,109 vehicles in Q1, marking a 58.1% increase compared to the same quarter in the previous year.
Interim CEO Marc Winterhoff highlighted the company's success in setting new delivery records, bolstering its market standing, and adhering to operational priorities during the quarter. The introduction of the Lucid Gravity model to more customers and showrooms was also noted as an important milestone for Lucid.
CFO Taoufiq Boussaid emphasized the company's strategic focus on short-term objectives, such as increasing production volume and enhancing profit margins. He also pointed out that Lucid is aiming for long-term value creation by establishing clear strategic goals, maintaining strong liquidity, and offering innovative products that redefine market standards.
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 upside of 8.48% from the current price of $2.33. 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 352.79% from the current price of $2.33. 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.
