Lucid Motors is set to release its latest earnings report, and investors should prepare for potential volatility stemming from the results. The company is expected to reveal a per-share loss of 30 cents on sales totaling approximately $180 million. This marks a decrease from the previous year when Lucid reported a 28-cent loss with sales reaching around $256 million.

Decrease in Revenues and Deliveries

The decline in revenues is mirrored by a decrease in volumes, with Lucid delivering 1,734 units in the recent quarter compared to 1,932 units delivered in the same period the year prior.

Expected Price Decline

Furthermore, pricing is anticipated to see a dip, with the average price per car dropping to about $93,000 for the fourth quarter compared to nearly $150,000 in the previous year. Typically, car start-ups introduce their premium-priced models first.

Growth and Projections

Despite the decrease in some areas, Lucid has shown growth in overall deliveries, having delivered 6,001 units throughout the full year, an increase from 4,369 units delivered in 2022. Analysts are expecting approximately 12,000 units to be delivered in 2024.

Financial Outlook

Wall Street projections suggest that Lucid will see a cash use of about $1 billion for the fourth quarter and a total cash use of $3.2 billion for 2024. As of the end of the third quarter, Lucid had approximately $4.9 billion in cash reserves.

Anticipated Stock Movement

Earnings, cash flow, and delivery guidance are key factors that can impact the company's stock following the report. Investors should be prepared for potential significant movements as options markets indicate an expected 17% fluctuation following earnings. Historically, shares have moved an average of around 9% following the last four quarterly reports.

Conference Call and Market Performance

Management will hold a conference call at 5:30 p.m. Eastern time on Wednesday to discuss the results and provide insight into the upcoming year. Ahead of the report, Lucid stock has experienced a 62% decline over the past year while the broader market, represented by the S&P 500 and Nasdaq Composite, has seen growth of approximately 24% and 36%, respectively, during the same period.

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