2024-04-19 04:56:14 ET
Summary
- Lucid Group reported higher-than-expected delivery and production volumes for Lucid Air in Q1, but price cuts have likely driven gains.
- The risk profile for smaller EV players like LCID is unappealing, especially after Tesla's payroll cuts and warnings about challenges in the global EV market.
- With Fisker fighting against bankruptcy, smaller EV companies face an uphill battle for survival in FY 2024.
Lucid Group ( LCID ) last week reported first-quarter delivery and production volumes for the Lucid Air, which came in ahead of expectations. However, delivery gains have been driven in part by price cuts, so while deliveries have surged relative to the first-quarter of last year, I believe the company is set to see growing margin pressure when it releases earnings for the first-quarter next month. After Tesla ( TSLA ) drastically cut its payrolls and warned of challenges in the global EV market this month, the risk for smaller EV players, like Lucid, is only increasing. I believe the risk profile has further deteriorated lately. With Fisker fighting for survival and Lordstown already going out of business, Lucid faces an uphill battle in FY 2024!...
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For further details see:
Lucid: The Next Fisker? (Rating Downgrade)