Lucid Group stock price has crashed this year and is underperforming the broader market amid growth and profitability concerns. LCID crashed to a low of $2.35 on Tuesday and is hovering slightly above last year.
It has plunged from $64 in 2020 to become a penny stock with a market cap of $7.2 billion, down from a record high of over $112 billion. This article explores what to expect when the company publishes its results on Tuesday.
Lucid Group earnings ahead
The LCID stock price will be in the spotlight on Tuesday as the Tesla rival publishes its first-quarter numbers.
These data come at a difficult time for the automobile industry as the recently announced auto tariffs lead to supply chain issues.
Lucid Group is, to some point, insulated from the general auto tariffs since it manufactures its vehicles in the United States. This means that its vehicles will not be tariffe, although the raw materials it uses will be.
The other risk is that Lucid’s global expansion push may be affected since it has no plants outside the US. As such, potential markets like those in Europe and even Canada will likely retaliate by boosting vehicle tariffs from the US.
Wall Street analysts are optimistic that Lucid Group will report relatively strong numbers. The average estimate is that its revenues will be $246 million, up by 42.5% from the first quarter of last year.
The most recent numbers showed that Lucid Motors produced 2,212 vehicles in the first quarter. It also had 600 vehicles on transit to Saudi Arabia for final assembly. It then delivered 3,109 vehicles during the quarter.
Analysts also expect the company to narrow its losses. They expect the numbers to show that the loss per share will be 23 cents, an improvement from last year’s 30 cents.
The annual guidance is also expected to show that the company’s business was growing. Analysts see the annual revenue rising from $807 million in 2024 to $1.47 billion this year and $2.8 billion in the next one.
Read more: Lucid stock price could be at risk amid strong vehicle depreciation
Is LCID stock a good buy
Lucid Group has made a lot of progress in the past few year, even though its profitability has remained elusive.
The most recent numbers revealed that it produced 9,029 vehicles in 2024 and delivered 10,241 of them. It also guided to an annual production target of 20,000 vehicles this year, representing a 121% increase. This explains why many analysts anticipate that its annual revenue will jump by over 80% this year.
Lucid has also raised cash to boost its balance sheet. It recently raised $1 billion through a convertible senior notes offering. A convertible note is a form of debt financing, but where the lenders have the ability to convert their debt into stock if it rises.
This fundraising was important as the company ended the last quarter with over $1.6 billion in cash and investments, and $2.4 billion in short-term investments.
Lucid Group also acquired assets owned by Nikola and extended offers to about 300 of the company’s former staff.
Lucid Group stock price analysis
The daily chart shows that the LCID share price peaked at $3.65 in January and then dropped to $2.35. It has dropped below the 50-day moving average.
Most importantly, it has formed a bearish flag chart pattern, a popular bearish continuation sign. It has also formed a rising wedge pattern, another reversal sign.
Therefore, the stock price will likely drop after earnings. If this happens, the next point to watch will be at $2, the lowest level on March 11. A move above the resistance point at $2.65 will invalidate the bearish outlook.
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