Lucid Stock Is Tumbling Monday: What's Going On?

Lucid Group Inc LCID shares are trading lower Monday. Cantor Fitzgerald reiterated an Underweight rating on the stock ahead of earnings next month.

What Happened: Cantor Fitzgerald analyst Andres Sheppard reiterated Lucid with an Underweight rating on Monday and maintained a price target of $4.

Lucid is the only EV company that Sheppard has an Underweight rating on. He’s Overweight all of the other EV makers he covers and highlighted recent preliminary EV data for the second quarter showing that EVs accounted for approximately 8% of total vehicle sales in the U.S.

Roughly 330,460 EV units were sold in the second quarter, representing growth of about 11% on a year-over-year basis, the analyst said. Sheppard noted that Tesla Inc’s TSLA EV market share fell to 49.4% from 52.3% in the first quarter.

The Cantor Fitzgerald analyst highlighted Lucid’s upcoming earnings report set for after the market close on Aug. 5. According to estimates from Benzinga Pro, Lucid is expected to report a loss of 25 cents per share and revenue of $178.418 million.

Lucid has struggled to meet or exceed analyst estimates in recent quarters. The luxury EV maker hasn’t beat estimates on both the top and bottom lines since the first quarter of 2022, according to Benzinga Pro.

Last week, Lucid announced production and delivery totals for the quarter ended June 30. The company said it produced 2,110 vehicles and delivered 2,394 vehicles during the quarter. For comparison, Lucid said it produced 1,728 vehicles and delivered 1,967 in the first quarter.

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LCID Stock Prediction 2024

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Lucid have an average one-year price target of $3.38, representing an expected downside of 10.7%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. Two analysts have bearish recommendations on Lucid, while No analysts have bullish ratings. The Street high price target from Cantor Fitzgerald is $4, while the street low from Citigroup is $2.90.

LCID Price Action: Lucid shares were down 11.6% at $3.76 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Lucid.