2024-03-05 08:30:00 ET
Summary
- Lucid Group stock performance has been disastrous, losing nearly 95% since its highs in early 2021.
- The company's recent Q4 earnings release unveiled weak production guidance for 2024, as its premium-priced segment has failed to take off.
- Lucid Group is still priced for growth, with the Saudi PIF's support as its cornerstone investor.
- Lucid is not expected to post free cash flow profitability through the FY28 forecast period.
- I strongly urge investors to consider reallocating their Lucid Group positions, as hope isn't a viable investment strategy.
I admire Lucid Group, Inc. ( LCID ) investors still holding on to their positions, notwithstanding the disastrous performance of LCID since its early 2021 highs close to the $65 level. With LCID plunging into penny stock territory, as I elucidated in my previous update in November 2023, it has lost nearly 95% since its frothy highs. It worsened in late January 2024, as LCID collapsed toward the $2.55 level. I assessed short covering likely occurred, although LCID remains a short-seller favorite. With a short interest as a percentage of its float of more than 30% as of mid-February 2024, the market hasn't given up its bearish thesis on LCID....
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For further details see:
Lucid: Why Hope Isn't An Investment Strategy