Lucid Group (NASDAQ: LCID ) is riding a wave of anticipation that it may have finally turned the corner. After a second-quarter deliveries update, Lucid stock hit a level not seen since last December. Two weeks ahead of the luxury electric vehicle manufacturer’s second-quarter earnings report, investors are hoping Lucid found the right combination of production, price and incentives to generate sustained sales growth.
They are now looking for clues this is the turnaround they have been waiting for. Wall Street is holding its breath too. Analysts have a collective hold rating on Lucid stock.
It won’t be production and delivery numbers that are being closely watched. We got those in the early July update . Rather it will be whether it can reduce its cash burn and not lose so much money on every vehicle produced.
Yet if Lucid pulls off an earnings beat on August 5, it could quickly reset price target expectations well above the $4 per share consensus view. If that bullish scenario does play out in two weeks, don’t get into the driver’s seat. Use the new higher price point to take your money off the table.
Clearing Out the Logjam The production and delivery update earlier this month was a pleasant surprise. Lucid produced 2,110 EVs and delivered 2,394. It was the second consecutive quarter the automaker sold more vehicles than it made.
Yet Lucid is making far fewer vehicles than it previously did. Year-to-date, it has produced 3,838 EVs, or 14% fewer than last year. But i.