Luxury electric vehicle (EV) maker Lucid Group (LCID) will report its Q2 results on August 5. The penny stock is up 15% over the past month but remains down around 20% for the year, as weaker-than-expected Q2 delivery numbers and softening demand continue to weigh on sentiment. Buyers are increasingly shifting toward cheaper hybrids and gas-powered cars, while rising competition in the EV space adds further pressure. Wall Street expects a Q2 loss of $0.21 per share, better than the $0.34 loss reported a year ago.
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Meanwhile, revenues are expected to rise by 30% from the same quarter last year, reaching $261.3 million, according to data from the TipRanks Forecast page. Importantly, Lucid has missed earnings estimates five times in the past nine quarters, reflecting the struggles in the EV market.
Things to Know Ahead of Q2
On July 22, Lucid announced that its Air sedan models would gain access to Tesla’s (TSLA) Supercharger network starting July 31. The news was well-received by investors, sending the stock up about 11%.
Just days earlier, on July 18, Lucid revealed a major partnership with Uber (UBER) to deploy over 20,000 vehicles equipped with Nuro’s self-driving tech over six years. As part of the deal, Uber will invest $300 million in Lucid through a private placement.
Analysts’ Views on LCID Ahead of Q2 Results
Following the Uber partnership news, Andres Sheppard of Cantor Fitzgerald reiterated a Neutral rating and $3 price target on the stock. Sheppard noted that Lucid’s tie-up with Uber and Nuro to deploy over 20,000 self-driving Gravity SUVs marks a key move into autonomous mobility. However, he prefers to remain on the sidelines for now.
Meanwhile, Benchmark analyst Mickey Legg reiterated a Buy rating and raised the price target to $7 from $5. Legg sees this deal as a clear win that brings in fresh capital and two strong partners, while helping Lucid enter the autonomous ride-hailing space. He advised investors to buy LCID ahead of its Q2 results, expecting the stock’s recent momentum to carry through in the near term.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry; the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 13.22% move in either direction.
Is LCID Stock a Buy?
The stock of Lucid Group has a consensus Hold rating among nine Wall Street analysts. That rating is currently based on one Buy, seven Holds, and one Sell recommendations issued in the past three months. The average LCID price target of $3.19 implies 31.82% upside from current levels.
