Lucid stock declines after missing on Q4 revenue estimates

February 23, 2023 at 9:37 AM

Yahoo Finance Live anchors Julie Hyman and Jared Blikre discuss the decline in stock for Lucid following fourth-quarter earnings as deliveries come in below estimates.

Video Transcript

[AUDIO LOGO]

- Let's talk about some movers now ahead of the opening bell-- shares of Lucid on the list steering into the red after the EV company missed revenue estimates as vehicles delivered came in below analysts' expectations, the shares plunging by 12 and 1/2%-- those deliveries, just over 1,900 in the fourth quarter. The company built about 3,500 more.

But in terms of deliveries, that 1,900 or so was short of the 2,800 that analysts had been anticipating. And the company is now slashing its production target for this year, Jared, now saying it plans to make 10 to 14,000 vehicles. It had planned to make 20,000 cars last year.

- Wow. These are some lofty predictions.

- Yeah.

- So here's one step. Here's what they actually did. Vehicles delivered-- 932. Estimate was for 2,831. They missed that by a third. That is huge. So what does it really matter what they're saying about the near-term future?

These are-- here let me quote B of A John Murphy here, because he downgraded the stock to neutral, but only downgraded it to neutral because he continues to like Lucid as, quote, "one of the most attractive among the universe of startup EV automakers," citing the management team, impressive experience-- also speculation in Saudi Arabia. The [? PEAF ?] there may boost its stake.

But this is really just-- so this is relative to their peers. They're looking good. If you want to be in this space-- all right, Tesla. You got to be there in Tesla, I would assume, maybe one of the traditional ones, and then some of the fringe players like Lucid-- well, we can talk about Lordstown Motors as well. If you want to compare Lucid to them, Lucid may be the better-- the cleaner shirt.

- Yeah, I guess it's all relative. I mean, Lordstown this morning said it was suspending its production to address some production issues that it was having. So that stock has been on the move as well.

But, you know, the question is, like, do you have to be in the space, and what do you-- I don't know. But another analyst commentary that stood out to me-- Evercore ISI analyst Chris McNally saying, "An end to downward revisions is nowhere in sight for Lucid."

So that's not a good thing. I mean, I don't know if you've seen one of these things in person, Jared. They're beautiful cars--

- Yeah.

- --to look at.

- I have some nice IPO swag from their IPO day down--

- Ah.

- --at the New York Stock Exchange. I got one of those in a little glass case. So, yes, they're beautiful. I get--

- Beautiful. But if you can't make and sell enough of them, then all the beauty in the world is not gonna make a difference--

- Yes.

- --I guess.