Lucid: Speculative Buy Before Earnings
Risks with Lucid
The biggest risk for Lucid is the production ramp. The electric vehicle manufacturer lowered its production target earlier this year which solidified Lucid's short-term down-trend. If Lucid fails to deliver strong reservation and delivery growth in Q2'22 and beyond, shares may revalue lower.
High inflation and cost increases for raw materials could slow product demand and revenue growth for Lucid's high-priced electric vehicles going forward. Revenue expectations don't yet show that inflation is a threat to Lucid, but it could become one.
Final thoughts
Lucid likely benefited in the second quarter from customers pulling their electric vehicle purchases forward to avoid higher prices after June 1, 2022. Lucid could surprise with stronger reservation and revenue growth for the second quarter next week which could push shares into a new up-leg!
$Lucid Group(LCID.US$
The biggest risk for Lucid is the production ramp. The electric vehicle manufacturer lowered its production target earlier this year which solidified Lucid's short-term down-trend. If Lucid fails to deliver strong reservation and delivery growth in Q2'22 and beyond, shares may revalue lower.
High inflation and cost increases for raw materials could slow product demand and revenue growth for Lucid's high-priced electric vehicles going forward. Revenue expectations don't yet show that inflation is a threat to Lucid, but it could become one.
Final thoughts
Lucid likely benefited in the second quarter from customers pulling their electric vehicle purchases forward to avoid higher prices after June 1, 2022. Lucid could surprise with stronger reservation and revenue growth for the second quarter next week which could push shares into a new up-leg!
$Lucid Group(LCID.US$
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