Lucid Income: A Lean Model, a Profit Path, and a Changing Stock Split

Written by Claudio Afonso | Info@claudio-afonso.com | LinkedIn | X

Electric vehicle (EV) startup Lucid Motors is set to report its first-quarter financial results on May 6 as shareholders look for signs of higher demand and an increase in annual production targets.

In the first quarter, the EV maker delivered 1,728 units of its Air luxury sedan and shipments reached 1,967 vehicles.

In February, Lucid said its production guidance for this year was “around 9,000 units”, which would represent a slight increase from the 8,428 vehicles produced in 2023.

Lucid Gravity (Credit: Lucid Motors)

With the stock hitting a new high earlier this week at $2.29 per share, the start of deliveries of its second Gravity model later this year is seen as an important moment for the company.

As of today, there are 360 questions published on the Sema platform that Lucid (and several companies like Tesla or Polestar) use to collect institutional and retail shareholder questions. Those voted for the most will be answered in an earnings conference call by Lucid’s chief executive Peter Rawlinson and the leadership team.

With more than 1,800 participants representing more than 2.22 million shares, shareholders are particularly concerned about the company’s path to profitability questioning the business strategy of reducing costs and achieving positive net income.

Topics such as the launch of an affordable model, possible sources of income by selling its battery technology or engines to other automakers or the stock price are also among the most boosted so far.

1. Can you elaborate on Lucid’s approach to profitability? What are the important steps and challenges that the company is looking to face in reducing production costs and achieving positive output?

2. Will Lucid make an affordable car to compete with Tesla?

3. Is Lucid in talks with legacy automakers to supply batteries or engines for production?

Source: Say Technology Forum until April 24th, 2:30pm ET

Other questions include Lucid’s product strategy towards “customer desires” as well as the marketing strategy to develop brand awareness and increase sales. Here are the other top 10 questions on the forum as of today.

4. The stock price continues to fall, what measures will you use to increase the price significantly? It seems that the product output is still very low.

5. What is your 2025 outlook for sales and have you thought about transitioning Lucid’s technological success to a different platform that is more in line with customer needs?

6. Do you have any plans for a reverse split in 2024?

7. What are the marketing plans to increase the sales business?

8. Are there plans for an affordable electric car from Lucid? If so, what is the roadmap for it?

9. Lucid seems to be a car only for the rich, do yall plan to make a cheap car that many can afford.

10. How is the development of the company and the market now? Many people have lost money at this time.

Source: Say Technology Forum until April 24th, 2:30pm ET

Citi recently initiated coverage on shares of Lucid Motors with a neutral rating and a $2.90 price target. The company emphasizes Lucid’s “strong” electric vehicle (EV) technology, although it raises concerns about the risk of the implementation of the next model planned for the end of 2024 Gravity.

Last week, Lucid Motors signed a partnership with electric vehicle (EV) charging company Wallbox to provide chargers to its European customers.

Written by Claudio Afonso | Info@claudio-afonso.com | LinkedIn | X