Luxury EV Maker Lucid Group Delivers Over 2,000 Units in Q1, Stock Jumps 6%
Why Lucid Stock Jumped Today
Lucid delivered nearly 2,000 luxury electric sedans in the first quarter, helping to drive down inventory. Shareholders of Lucid Group (NASDAQ: LCID) haven't had much to cheer about over the past year. The stock of the luxury electric vehicle (EV) maker has plunged 65% in the last 12 months. But shares got a bump today after the company reported its first-quarter production and delivery results.
Luxury EV market size concerns
- Lucid didn't blow away its own production estimates in the first quarter.
- Management previously predicted about 9,000 vehicles in 2024.
- First-quarter production of 1,728 EVs keeps full-year estimate steady.
But sales volume remains lower than predicted, leading to increased cash burn. The Saudi Arabian Public Investment Fund's support averts potential bankruptcy discussions. Lucid's future rides on Air sedan sales and the success of the Gravity SUV launch. Despite challenges, investors gain confidence as Air sedan sales hold steady.
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