LUCID Stock Forecast 2023-2027

LUCID Stock Forecast for the next 12 months is $6.9

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Latest Lucid Stock Price

LUCID Stock Performance so far

• Last 1 Month: -12.5%
• Last 6 Months: -30.3%
• Last 12 Months: -60.9%

Lucid Price Target: Analysts

Average Lucid Target for next 12 months	$6.9
RBC Capital	$6.0
Baird	$7.0
Exane BNP Paribas	$5.0
Citigroup	$7.5
Needham	$9.0

Lucid Stock Price Prediction for the next 5 years (Aggregated)

• LCID Lucid Stock Price Prediction 2023 is $7.04
• LCID Lucid Stock Price Prediction 2024 is $11.0
• LCID Lucid Stock Price Prediction 2025 is $16.6
• LCID Lucid Stock Price Prediction 2026 is $25.1
• LCID Lucid Stock Price Prediction 2027 is $34.2

Lucid Stock Price Prediction Today, Tomorrow and Week

• LCID Lucid Stock Price Prediction in the next 24 hours is between $5.32 and $5.47
• LCID Lucid Stock Price Prediction this week is between $5.26 and $5.59

LUCID Stock Forecast: Q2 2023 Earnings

Lucid Group, Inc. displayed significant growth in assets and revenues for the period ending June 30, 2023. However, the growth was coupled with an increasing net loss, indicating heavy operational expenditures or investments. The company produced 2,173 Lucid Air cars, marking a 204% rise from the previous year, and delivered 1,404 vehicles, a 107% YoY increase. However, these figures represent a decline from both Q1 and Q4 2022, suggesting two consecutive quarters of decreased production and deliveries. This trend raises concerns, especially when there’s a noticeable disparity between the number of vehicles produced and those delivered, and competitors like Rivian show more consistent growth.

• Revenue & Production:
  • Lucid reported a Q2 revenue of $150.9 million, attributed to the delivery of 1,404 vehicles.
  • The company aims to produce over 10,000 vehicles by the end of 2023.
• Financial Position:
  • Lucid’s balance sheet reflects total liquidity of $6.25 billion as of June 30, 2023.
  • The company raised $3.0 billion in capital during Q2, with $1.8 billion coming from the Public Investment Fund (PIF).
• Partnerships & Agreements:
  • Lucid secured contracts worth over $450 million with Aston Martin for providing powertrain and battery system technology.
  • Lucid finalized a purchase agreement with the Saudi Arabian government and began significant vehicle shipments to the kingdom.
• Upcoming Launches:
  • Lucid is set to launch the Lucid Air Sapphire and Lucid Air Pure Rear Wheel Drive in mid-September.
  • The company’s new SUV, Lucid Gravity, is slated for unveiling in November, with production targeted for late 2024.

Performance Details

• Revenues:
  • Quarter-over-Quarter (QoQ) Growth: Increased by $53.53 million (approximately 55.0%) from $97.34 million in Q2 2022 to $150.87 million in Q2 2023.
  • Half-Yearly Growth: Rose by $145.3 million (about 93.7%) from $155.01 million in the first half of 2022 to $300.31 million in the first half of 2023.
• Net Loss:
  • QoQ Increase: The net loss deepened by $543.8 million (approximately 246.7%) from $220.43 million in Q2 2022 to $764.23 million in Q2 2023.
  • Half-Yearly Increase: The net loss for the first half-year surged by $1,242.05 million (approximately 411.7%).
• Stockholders’ Equity:
  • Additional Paid-In Capital Growth: Saw an increase of $3.15 billion (about 26.8%) from $11.75 billion in December 2022 to $14.90 billion in June 2023.
• Adjusted EBITDA & Free Cash Flow:
  • Adjusted EBITDA: Deteriorated by $296.26 million (approximately 71.5%) from -$414.08 million in Q2 2022 to -$710.34 million in Q2 2023.
  • Free Cash Flow: Declined by $80.63 million (approximately 9.8%) from -$823.45 million in Q2 2022 to -$904.07 million in Q2 2023.
• Financing Activities:
  • The company witnessed a substantial inflow in Q2 2023 due to the issuance of common stock, emphasizing its capital-raising efforts.

Lucid Stock Forecast 2023: Buy or Sell

Lucid Stock Forecast 2023: Bull Case

Cheaper Models in Pipeline – Lucid is addressing concerns about expensive cars by introducing more affordable models like the Air Grand Touring, Air Touring, and Air Pure. These models are already being delivered, showcasing the company’s commitment to a broader market. Lucid’s strong R&D efforts are evident in its robust pipeline, which includes upcoming releases like the Lucid Air Sapphire, Lucid Air Pure Rear Wheel Drive, and the anticipated unveiling of the Lucid Gravity SUV in November. These developments position Lucid to compete in the EV market for years to come, potentially generating additional revenue in 2023 and beyond.

A turnaround is expected in 2023 – Lucid is making progress towards its 2023 production goal of over 10,000 vehicles. In the second quarter, they achieved significant milestones, such as forming a strategic partnership with Aston Martin. This partnership validates Lucid’s technology and is the first for their technology arm. The company anticipates exciting product releases in the second half of the year, including the Lucid Air Sapphire and Lucid Air Pure Rear Wheel Drive, as well as the unveiling of their new SUV, Lucid Gravity, set for November.

Lucid Stock Forecast 2023: Bear Case

• Delivery issues and Financial Performance-Lucid has struggled with production and delivery issues, despite a high number of bookings, casting doubt on its ability to meet demand effectively. Intense competition in the electric vehicle (EV) industry, pricing pressure, and substantial operating losses in 2023 have raised questions about the company’s path to profitability. Additionally, its stock price has been in a relentless decline with a decline of around 60% in the past year, and disappointing financial results in the recent quarter of 2023 have further eroded investor confidence.

• Impact of Macroeconomic Headwinds- LCID shares lost 23% in the last 6 months and around 60% in the last year. Although a part of it was due to the cancellation of orders, a major part was also due to the macroeconomic headwinds that hurt high-growth stocks like LCID and TSLA. Fed is continuously increasing the interest rates and as a result, there are high chances of a recession in the US. While the economy appears to be getting better, there are no guarantees at the moment given the uncertainties on commodity prices, Russia, and how China’s recovery will play out on inflation.

Also, LCID share price performance is linked to the EV sector as a whole and Tesla Inc’s performance in particular. For example, in December 2022, there was a news report that Tesla was cutting production in China, EV sector shares sold off and LCID was no exception. In 2023, there are expectations of flagging demand in the EV sector. Additionally, Tesla stock is looking weak due to its issues and this will impact negatively stocks like LCID in 2023.

Lucid Stock Forecast 2023: Conclusion

Lucid must be seen as an EV start-up and to be considered if it revises production guidance. What is more important is that it should have the cash to stay afloat for at least a couple of years. Lucid had $2,776,880 cash and cash equivalents by June 30, 2023. It also raised $1.5 billion through stock dilution. Also, Lucid has the backing of Saudi Arabia since an affiliate of the Kingdom of Saudi Arabia is a major stakeholder in Lucid. In 2022, the government of Saudi Arabia also signed an agreement with Lucid to purchase 100,000 EVs over the next ten years.

For 2023, Lucid must stick to its production target and must ensure that there are no more reservation cancellations.

Read: Tesla Stock Prediction: TSLA 

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.