Lucid Group (LCID) Stock: Investors Bet Big on Production Plans Despite Mixed Q1 Results

TLDR

Lucid shares rose 8.66% to $2.51 despite missing Q1 earnings expectations Company delivered 3,109 vehicles in Q1, a 58% year-over-year increase Plans to ramp up production to 20,000 units annually, more than double last year’s output Q1 net loss widened to $731 million from $685 million a year ago Average 5-year revenue growth stands at an impressive 181.26%

---

Lucid Group saw its stock jump nearly 9% last Friday as investors responded positively to the company’s ambitious production plans, overlooking mixed first-quarter results that fell short of analyst expectations. The luxury electric vehicle maker is aiming to double its annual production to 20,000 vehicles despite reporting wider losses.

Lucid Group, Inc. (LCID)

The company’s shares closed at $2.51 after trading as high as $2.45 during mid-day activity. About 44.2 million shares changed hands, representing a 32% decline from the average daily volume of 65.5 million shares.

For the first quarter of 2025, Lucid reported delivering 3,109 vehicles, marking the fifth consecutive quarter with record deliveries and a 58% increase compared to the same period last year.

This performance helped generate revenue of $235.05 million, a 36.1% increase year-over-year, though still falling short of analyst expectations of $250.50 million.

The earnings report showed a loss of $0.24 per share, slightly worse than the consensus estimate of $0.23 per share.

Financial Position and Production Goals

Lucid’s net loss widened in Q1, with losses attributable to shareholders increasing by 6.7% to $731 million from $685 million in the same period last year.

The company currently maintains a debt-to-equity ratio of 0.77, a quick ratio of 3.26, and a current ratio of 3.71, with a market capitalization of $7.61 billion.

Despite these financial challenges, interim CEO Marc Winterhoff expressed optimism about the company’s direction. “We continued to build momentum in the first quarter as we achieved yet another delivery record, further strengthened our market position, and executed against operational priorities,” he stated.

Lucid’s ambitious plan to produce 20,000 vehicles annually would more than double the 9,000 vehicles delivered in 2024, showcasing the company’s commitment to scaling operations despite current losses.

The Lucid Air continues to maintain its position as the best-selling EV in its class in the United States and was recognized as the Best Luxury Electric Car by U.S. News and World Report for the fourth consecutive year.

Winterhoff also highlighted progress with the company’s newest model: “Lucid Gravity is beginning to arrive in more customers’ driveways and at our studios, and combined with our progress toward future initiatives, our company is well-positioned for future success.”

Market Context and Strategic Moves

Lucid’s performance comes during a challenging period for the EV market. According to a Cox Automotive report, U.S. electric vehicle sales rose 11.4% year over year to around 300,000 units in Q1 2025, making up 7.5% of all new vehicle sales, up from 7% in Q1 2024.

However, market growth faces headwinds from tariffs on vehicles and essential commodities like aluminum and battery supplies, as well as policy uncertainty.

Despite these challenges, research firm Rho Motion projects that global EV and plug-in hybrid sales will increase by more than 17% in 2025, reaching 20 million units, with U.S. sales projected to rise by 16%.

Lucid has made strategic financial decisions to strengthen its position, including closing a $1.1 billion convertible senior note issuance and expanding its Saudi Arabian credit facility by $240 million, which extends liquidity until the second half of 2026.

The company also made a strategic acquisition, paying about $17 million to acquire Nikola’s assets, reportedly increasing its value to hundreds of millions of dollars.

Wall Street remains cautious on Lucid stock, with a consensus rating of “Hold” and an average price target of $2.68, according to MarketBeat data.

Recent analyst actions include Stifel Nicolaus cutting their price objective from $3.50 to $3.00 while maintaining a “hold” rating, and Redburn Atlantic downgrading shares from “neutral” to “sell” with a price target reduction from $3.50 to $1.13.

Overall, two analysts have issued “sell” ratings, eight have given “hold” ratings, and two have assigned “buy” ratings to the stock.

Institutional investors have been adjusting their positions, with Deutsche Bank AG boosting its stake by 5.8% in the first quarter, while Charles Schwab Investment Management Inc. increased its holdings by 2.2%.

Vanguard Group Inc. remains a major shareholder, holding over 110.9 million shares valued at approximately $268.5 million after increasing its position by 0.6% in the first quarter.

Analysts forecast that Lucid Group will post earnings of -$1.25 per share for the current fiscal year, as the company continues its journey to scale production while navigating financial challenges.

The post Lucid Group (LCID) Stock: Investors Bet Big on Production Plans Despite Mixed Q1 Results appeared first on CoinCentral.