Lucid Group (LCID) AI Stock Analysis

• Market Cap: $7.10B
• Dividend Yield: N/A
• Average Volume (3M): 101.61M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.63
• Revenue Growth: 40.67%
• EPS Growth: 3.40%
• Country: US
• Employees: 6,800
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Manufacturers
• EPS (TTM): -0.24
• Shares Outstanding: 3,048,846,000
• 10 Day Avg. Volume: 89,631,091
• 30 Day Avg. Volume: 101,606,828
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -9.02
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.44
• Price Target Upside: 4.72% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11

Lucid Group's stock faces significant challenges with its financial performance, reflected in persistent losses and negative cash flows. While there is some positive momentum and liquidity, ongoing operational and valuation issues weigh heavily on the stock's outlook.

Positive Factors

Financial Support

LCID recently issued a private offering of $1.1 billion in convertible senior notes, demonstrating ongoing financial support for the business.

Leadership and Strategy

The emergence of a potentially bullish thesis for Lucid with a new leadership team is seen as a positive development.

Production Capacity

LCID acquired Nikola’s former manufacturing facility and headquarters, providing space to expand production capacity.

Negative Factors

CEO Departure

The departure of CEO Peter Rawlinson increases the risk that product development stalls and consumer demand dampens.

Profitability Timeline

The timing of achieving positive gross profit is likely pushed out materially due to various impacting factors.

Volume Projections

Gravity volumes appear to be ramping slower than expected, leading to lower delivery projections for 2025.

Lucid Group Business Overview & Revenue Model

Company Description

Lucid Group, Inc. (LCID) is an American electric vehicle manufacturer and automotive company headquartered in Newark, California. The company specializes in producing luxury electric cars with a strong emphasis on innovation, sustainability, and advanced technology. Lucid's core product is the Lucid Air, a high-performance electric sedan that boasts impressive range, speed, and cutting-edge features. Lucid Group is committed to redefining the electric vehicle market by offering premium products that combine luxury with sustainable energy solutions.

How the Company Makes Money

Lucid Group generates revenue primarily through the sale of its electric vehicles, particularly the Lucid Air model. The company's revenue model focuses on the premium segment of the electric car market, targeting consumers who value luxury, performance, and advanced technological features. Lucid also aims to expand its revenue streams through direct sales and a network of showrooms and service centers. Additionally, the company is exploring opportunities in energy storage solutions and vehicle-related services, which could contribute to future earnings. Strategic partnerships and collaborations in technology and manufacturing may also play a role in enhancing Lucid’s market presence and revenue potential.

Lucid Group Financial Statement Overview

Summary

Lucid Group's financial performance is challenged by significant losses, declining revenues, and negative cash flows. The income statement shows severe revenue generation issues and operational losses. The balance sheet indicates a solid equity base but is undermined by negative returns and profitability. Cash flow remains negative, highlighting liquidity concerns and the need for improved operational efficiency.

Income Statement

The income statement reflects significant challenges for Lucid Group, with persistent negative gross profit and net income margins over the years. The most recent annual report shows zero revenue, a substantial decline from the previous year, indicating severe revenue generation issues. The EBIT and EBITDA margins also remain negative, highlighting continued operational losses. Overall, the company is struggling to achieve profitability and maintain consistent revenue growth, which poses significant risks to financial stability.

Balance Sheet

Lucid Group's balance sheet shows a mixed picture. The debt-to-equity ratio has improved slightly, reflecting a decrease in total debt and a solid equity base. However, the return on equity is negative due to ongoing net losses, and the equity ratio, while stable, is undermined by the company's inability to generate profits. Despite having substantial cash reserves, the company's assets are not translating into profitable operations, which is a concern for future financial health.

Cash Flow

The cash flow statement indicates persistent negative free cash flow, reflecting ongoing difficulties in generating cash from operations. The operating cash flow to net income ratio remains adverse, suggesting inefficiencies in converting revenue into cash. Additionally, free cash flow continues to decline, exacerbating liquidity concerns despite previous financing activities that bolstered cash reserves. Overall, the cash flow situation underscores the need for improved cash management and operational efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
807.83M	595.27M	608.18M	27.11M	3.98M
	Gross Profit
-923.11M	-1.34B	-1.04B	-127.79M	906.00K
	EBIT
-3.02B	-3.10B	-2.59B	-1.53B	-599.23M
	EBITDA
-2.38B	-2.57B	-1.07B	-2.50B	-709.29M
	Net Income Common Stockholders
-2.71B	-2.83B	-1.30B	-2.58B	-719.38M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
4.03B	3.86B	3.91B	6.26B	614.92M
	Total Assets
9.65B	8.51B	7.88B	7.88B	1.40B
	Total Debt
2.09B	2.43B	2.08B	2.00B	980.00K
	Net Debt
478.17M	1.06B	348.00M	-4.27B	-613.43M
	Total Liabilities
5.78B	3.66B	3.53B	3.97B	227.38M
	Stockholders Equity
3.87B	4.85B	4.35B	3.91B	1.18B
Cash Flow		Free Cash Flow
-2.90B	-3.40B	-3.30B	-1.48B	-1.03B
	Operating Cash Flow
-2.02B	-2.49B	-2.23B	-1.06B	-570.20M
	Investing Cash Flow
-1.29B	-946.98M	-3.68B	-420.69M	-459.58M
	Financing Cash Flow
3.55B	3.07B	1.35B	7.14B	1.29B

Lucid Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCID, the sentiment is Negative. The current price of 2.33 is below the 20-day moving average (MA) of 2.44, below the 50-day MA of 2.34, and below the 200-day MA of 2.83, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.30 is Neutral, neither overbought nor oversold. The STOCH value of 7.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LCID.

Lucid Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LI	76 Outperform	$25.50B	24.47	12.29%	―	15.50%	-32.48%
Sector *	61 Neutral	$6.58B	11.81	3.06%	3.99%	2.54%	-21.54%
RIVN	56 Neutral	$15.48B	―	-53.82%	―	0.58%	35.39%
XPEV	55 Neutral	$18.42B	―	-17.11%	―	32.32%	49.34%
NIO	47 Neutral	$7.97B	―	-142.49%	―	16.99%	12.99%
LCID	41 Neutral	$7.10B	―	-50.06%	―	40.67%	3.40%
VFS	39 Underperform	$8.63B	―	36.15%	―	139.64%	-159.15%

Lucid Group Corporate Events

Lucid Group Issues Regulation FD Disclosure Report

Lucid Group has released a current report on Form 8-K, which is not considered filed under the Securities Exchange Act of 1934 or the Securities Act of 1933. The report and its exhibits are not subject to the liabilities of Section 18 of the Exchange Act and are not incorporated by reference in any other filings.

Lucid Group Announces CEO Transition and Strategic Focus

On February 21, 2025, Peter Rawlinson resigned as CEO and CTO of Lucid Group, transitioning to a Strategic Technical Advisor role. Marc Winterhoff, previously COO, was appointed as Interim CEO, with the Board initiating a search for a permanent successor. This leadership change is part of Lucid’s succession planning, aiming to maintain operational continuity and strategic growth. The transition follows the successful launch of the Lucid Gravity, with the company focusing on production ramp-up and cost reduction strategies.