LCID Stock On Track For Worst Month In Over 1.5 Years On Operational Hurdles

• Lucid’s share decline this month was driven by a series of operational and financial setbacks.
• Earlier this month, the company reported that it produced 5,500 vehicles but delivered only 3,093 vehicles, owing to a 29-day disruption in the deliveries of its Gravity SUV.
• The company also announced a $1.05 billion capital raise from Saudi-linked Ayar Third Investment, and as part of an expanded agreement with ride-hailing giant Uber Technologies, which triggered concerns regarding dilution.

Shares of Lucid Group (LCID) are on track to close in the green on Thursday after six consecutive sessions of closing in the red.

LCID is, however, now on track to record its worst month since Oct. 2024, if losses hold. The stock hit multiple all-time lows over the month, closing at $5.76 on Wednesday, compared to the opening price of $9.69 on the 1st of April.

Shares of the company traded 10% higher at the time of writing. 

What Drove The April Selloff?

The decline this month was driven by a series of operational and financial setbacks. Earlier this month, the company reported that it produced 5,500 vehicles but delivered only 3,093 vehicles, owing to a 29-day disruption in the deliveries of its Gravity SUV due to a supplier quality issue with second-row seats, highlighting production and quality challenges.  

Mid-month, the company said that it expects first quarter (Q1) revenue of about $280-$284 million, well below Wall Street projections of $370 million, and projected an operating loss of about $985 million to $1 billion.

The company also announced a $1.05 billion capital raise from Saudi-linked Ayar Third Investment, and as part of an expanded agreement with ride-hailing giant Uber Technologies, which triggered concerns regarding dilution. LCID’s setback this month is largely company-specific, with EV giant Tesla Inc’s TSLA stock on track to record 3% gains this month. Rising EV player Rivian Automotive (RIVN), meanwhile, is on track to clock 10% gains.

The company’s full first-quarter earnings are now slated for May 5.

LCID Analyst View

According to data from Koyfin, two of the 12 analysts covering LCID rate it ‘Buy,’ while seven rate it ‘Hold,’ and three rate it ‘Sell’ or lower. The 12-month average price target on the stock is $12.77, representing a potential upside of over 100%.

TD Cowen analyst Itay Michaeli lowered the firm's price target on Lucid Group to $10 from $19 and kept a ‘Hold’ rating on the shares earlier this month, while Baird slashed the price target to $12 from $14 with a ‘Neutral’ rating.

How Did LCID Retail Traders React?

On Stocktwits, retail sentiment around LCID stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume remained at ‘high’ levels.

LCID Stock has lost 75% over the past 12 months. 

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