Lucid Would 'Likely Be Half' Of Current Value If Not For This, Says Analyst After Stock's 11% Slump: 'Makes Absolutely No Sense'
Portfolio Pulse from Shanthi Rexaline
Lucid Group's shares fell over 11% after Q2 deliveries missed expectations and production dropped. The company's year-to-date deliveries were at 2,810 units, risking its 2023 guidance of 10,000 units. Analyst Gary Black stated that without Saudi Arabia's 65% ownership, Lucid's stock would likely be half its current value. He compared Lucid to Rivian Automotive, which is on track to deliver 50,000 units in 2023 and has an enterprise value of $15 billion, while Lucid is likely to deliver 6,000 vehicles and has an enterprise value of $16 billion.
July 13, 2023 | 5:33 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Lucid Group's stock fell over 11% after Q2 deliveries missed expectations. The company's 2023 guidance is at risk, and without Saudi Arabia's 65% ownership, the stock would likely be half its current value.
Lucid's missed Q2 deliveries and the risk to its 2023 guidance are negative indicators for the company's performance. The analyst's comments about the company's dependence on Saudi Arabia's ownership also suggest potential vulnerability.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Tesla CEO Elon Musk has warned of potential bankruptcies of Rivian and Lucid if they do not control costs.
While Musk's comments could potentially impact investor sentiment towards Rivian and Lucid, they do not directly impact Tesla's stock in the short term.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30
POSITIVE IMPACT
Rivian Automotive is on track to deliver 50,000 units in 2023 and has an enterprise value of $15 billion, according to analyst Gary Black.
The analyst's positive outlook on Rivian's 2023 deliveries and its enterprise value suggests a positive short-term impact on the company's stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50