Lucid Group stock (NASDAQ:LCID) has fallen by more than 75% from its 52-week high and by 20% in the last week alone.
Lucid Group (LCID) recently reported third-quarter production numbers and provided an update on its full-year projection. And after lowering its expectations earlier this year, the premium electric vehicle (EV) manufacturer met its objectives.
Lucid Stock: Market Updates
Lucid produced 2,282 cars and delivered 1,398 to customers in the third quarter. This is more than three times the amount of automobiles manufactured by the firm in the second quarter. Lucid expects to build between 6,000 and 7,000 cars this year, which is consistent with the last projection company provided investors in August. Despite plans for further models in the future, all of these sales are of the company’s Air sedan, which was named Car of the Year by MotorTrend.
On the one side, Lucid successfully resumed manufacturing after a challenging second quarter. Another way to put it is that the firm built automobiles at an annualized rate of more than 9,000, which bodes well for the fourth quarter and beyond. And based on the current projection range, Lucid will need to ramp up production considerably more in the fourth quarter to a range of around 2,500 to 3,500 cars.
It’s worth noting that merely hitting its current objectives is a welcome indication of stability following multiple quarters of guidance cutbacks, supply chain issues, and other hiccups. In other words, the fact that Lucid did not lower its forecast again is likely to make investors relieved.
Is Lucid Stock a good investment?
Even after a minor rise in response to the news, Lucid’s stock (NASDAQ:LCID) price has fallen by roughly 20% in the last week alone and is now 77% below its 52-week high.
There are some encouraging triggers. In August, the business had over 37,000 bookings for its Air sedan, and it just revealed its $250,000 Sapphire variant, which aspires to be the best-performing electric car in the world once manufacturing begins. More demand than supply capabilities is far from the worst challenge a firm can face, particularly given that supply chain bottlenecks seem to be easing.
Lucid stock (NASDAQ:LCID) is still a long way from profitability and, to be clear, is a speculative investment at this stage. Investors will get a glimpse at how these Q3 productions and delivery metrics converted into revenue when the business announces results on Nov. 8. With $4.3 billion in cash and short-term investments on its balance sheet, Lucid still has plenty of runways to ramp up production to self-sufficiency, and today’s announcement is a positive indicator that it’s on the right road.
Featured Image – Megapixl © Iandewarphotography
Author Okoro Chinedu 
