Lucid shares sink 10% on Q1 results: 'LCID is a zombie stock'
Lucid shares sink 10% on Q1 results: ‘LCID is a zombie stock’
Lucid shares down on vague outlook
The EV stock is being hit also because the management turned a bit vague in terms of production outlook.
Lucid now expects to make more than 10,000 vehicles this year. Its previous guidance was for 10,000 to 14,000. Still, CFO Sherry House said in the earnings press release :
Our mission and optimism are unchanged. We’re committed to an environmentally sustainable future – designing, building, and delivering the best EVs on the market.
Lucid Q1 earnings snapshot
Lost $780 million versus the year-ago $81.2 million
Per-share loss also increased from 5 cents to 43 cents
Revenue shot up more than 150% to $149.4 million
Consensus was 39 cents loss on $204 million revenue
Should you buy Lucid stock?
Lucid ended the quarter with just over $4.0 billion in total liquidity that it said was sufficient to fund operations through the second quarter of 2024. Still, David Trainer – Founder of New Constructs wrote in his recent report:
LCID is a zombie stock, which means it’s burning cash at an alarming rate and is at high risk of declining to $0 per share. Its stock price implies unrealistically high revenue and profit growth.
Lucid shares are also weighed because average revenue per delivery was about $106,000 in Q1 versus a much higher $133,000 in the previous quarter.
If you want to buy EV stocks, which car company is the best to invest in?
The EV stock is being hit also because the management turned a bit vague in terms of production outlook.
Lucid now expects to make more than 10,000 vehicles this year. Its previous guidance was for 10,000 to 14,000. Still, CFO Sherry House said in the earnings press release :
Our mission and optimism are unchanged. We’re committed to an environmentally sustainable future – designing, building, and delivering the best EVs on the market.
Lucid Q1 earnings snapshot
Lost $780 million versus the year-ago $81.2 million
Per-share loss also increased from 5 cents to 43 cents
Revenue shot up more than 150% to $149.4 million
Consensus was 39 cents loss on $204 million revenue
Should you buy Lucid stock?
Lucid ended the quarter with just over $4.0 billion in total liquidity that it said was sufficient to fund operations through the second quarter of 2024. Still, David Trainer – Founder of New Constructs wrote in his recent report:
LCID is a zombie stock, which means it’s burning cash at an alarming rate and is at high risk of declining to $0 per share. Its stock price implies unrealistically high revenue and profit growth.
Lucid shares are also weighed because average revenue per delivery was about $106,000 in Q1 versus a much higher $133,000 in the previous quarter.
If you want to buy EV stocks, which car company is the best to invest in?
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
MonkeyGee : none listed are Investible! Try adding XPENG.
70602580 MonkeyGee: XPENG is currently trending upwards to form an oscillation period with support at 8.16 and pressure at 11.40, at what price are you currently planning to enter the market?
MonkeyGee 70602580: I'm in along time ago around $8.
70602580 MonkeyGee: XPENG is in a high state, currently waiting is our best result, these two days or wait and see, cpi has not been released, wait two days cpi release after the market will certainly have turbulence again. See after the market trend and then enter the market
MonkeyGee 70602580: makes sense to me. but you have to see how CPI impact China since this is an Asian stock.
70602580 MonkeyGee: Do you also invest in Asian stocks? I only invest in one Asian stock, XPENG, and it looks like you are interested in Asian stocks, do you have any opinion on XPENG's share price tomorrow?
MonkeyGee 70602580: if there is no war than the Asian stock has more opportunities. but there is alot of risk. it's a battle for financial Supremacy right now!