Why Lucid Stock Is Crashing Today

Lucid Group Inc LCID shares are trading lower Thursday after the company reported mixed fourth-quarter results and provided a weak reservation update. Multiple analysts are out with bearish coverage following the print.

What Happened: Lucid reported fourth-quarter revenue of $257.71 million, which missed estimates of $302.61 million. The company reported a fourth-quarter net loss of 28 cents per share, which beat average analyst estimates for a loss of 40 cents per share.

Lucid said it produced 3,493 vehicles in the fourth quarter, up 53% sequentially. The company delivered 1,932 vehicles during the quarter.

"Last year was a challenging year for everyone, yet despite the extraordinary supply chain and logistics challenges, the team persevered with an unrelenting focus on delivering what we believe is the best luxury sedan on the market," said Peter Rawlinson, CEO and CTO of Lucid.

Related Link: Lucid Motors Q4 Earnings Highlights: EV Company Beats On EPS, Misses On Revenue; Issues Production Update, 2023 Guidance

Lucid said it expects to produce between 10,000 and 14,000 vehicles in 2023. The company ended the fourth quarter with $4.9 billion in total liquidity. 

Lucid had over 28,000 reservations as of Feb. 21, which could be adding to selling pressure on the stock. In its third-quarter report, Lucid said it had "over 34,000" reservations and the $7,500 EV tax credit was set to kick in this month. 

• BofA Securities analyst John Murphy downgraded Lucid from Buy to Neutral and lowered the price target from $18 to $10.
• Cantor Fitzgerald analyst Andres Sheppard maintained Lucid with an Overweight and lowered the price target from $18 to $13.

LCID Price Action: Lucid has a 52-week high of $29.04 and a 52-week low of $6.09.

The stock was down 13.3% at $8.65 at time of publication, according to Benzinga Pro.

Photo: courtesy of Lucid.