Lucid shares just slipped 15%: explore why

Lucid reports lower-than-expected revenue for its fiscal second quarter.
The EV company cut its forecast for 2022 production volume in half.
Lucid shares are down nearly 15% in extended trading on Wednesday.

Shares of Lucid Group Inc (NASDAQ: LCID) are down nearly 15% in extended trading on Wednesday after the electric vehicles manufacturer reported weaker-than-expected quarterly revenue and lowered its outlook for production volume.

Lucid Q2 financial highlights

Lucid has a strong balance sheet

Lucid had $4.60 billion in cash, equivalents, and investments at the end of its fiscal Q2 – sufficient to fund operations well into 2023. In the earnings press release, CFO Sherry House said:

Lucid shares are now down more than 50% from their year-to-date high.

Lucid shares hit on production outlook

Lucid cut its forecast for production volume in half on Wednesday. It now expects to make 6,000 to 7,000 electric vehicles this year. Explaining why, CEO Peter Rawlinson wrote:

Wall Street currently rates Lucid shares at “overweight” with upside to $30 on average – a close to 70% upside from here.