Lucid shares sink 10% on Q1 results: ‘LCID is a zombie stock’

Lucid Group Inc (NASDAQ: LCID) lost nearly 10% in extended hours on Monday after reporting a disappointing first quarter.

Lucid shares down on vague outlook

The EV stock is being hit also because the management turned a bit vague in terms of production outlook.

Lucid now expects to make more than 10,000 vehicles this year. Its previous guidance was for 10,000 to 14,000. Still, CFO Sherry House said in the earnings press release:

The Newark-headquartered firm remains committed to launching its Gravity SUV in 2024. It delivered 1,406 vehicles in Q1 – well below 2,000 that analysts had expected. At writing, Lucid shares are down more than 45% versus their year-to-date high.

Lucid Q1 earnings snapshot

• Lost $780 million versus the year-ago $81.2 million
• Per-share loss also increased from 5 cents to 43 cents
• Revenue shot up more than 150% to $149.4 million
• Consensus was 39 cents loss on $204 million revenue

Should you buy Lucid stock?

Lucid ended the quarter with just over $4.0 billion in total liquidity that it said was sufficient to fund operations through the second quarter of 2024. Still, David Trainer – Founder of New Constructs wrote in his recent report:

Lucid shares are also weighed because average revenue per delivery was about $106,000 in Q1 versus a much higher $133,000 in the previous quarter.