A Little Good News for Lucid Investors

Source The Motley Fool

It's been a wild ride for investors in Lucid (NASDAQ: LCID), They spent the early history of the electric vehicle (EV) maker being disappointed in production and delivery figures, among other things.

But at a time when rivals such as Rivian are stalling in deliveries, Lucid has managed to string together a handful of impressive quarters. There's more good news for investors this week, too.

What's going on

Lucid will officially start taking orders on Nov. 7 for its second vehicle, the Gravity crossover. The selection will start with the high-level Grand Touring version that has a price tag nearing $95,000 before shipping, according to the company.

That's important for investors, since the much hyped sub-$80,000 Gravity Touring trim, which investors hope will help reach more-mainstream consumers and raise sales volumes, won't start production until late 2025.

According to Automotive News, Robby DeGraff, an analyst at AutoPacific, said: "While it's of course not uncommon for a start-up, or even legacy automaker, to launch the highest-priced trim of a new EV first to recoup development costs, it will be interesting to see how strong the take rate is at nearly $100,000."

That means investors hoping to see an immediate boost in sales and deliveries (and there should still be a noticeable bump) will have to be patient as the automaker works toward its more-affordable version. This isn't necessarily a bad thing, because as the company gradually ramps up production, it has the time to get the quality and production right before moving to higher-volume trims.

To understand how much this vehicle means to investors, consider that management forecasts the potential market for the Gravity crossover will be six times that of its Air sedan.

The road ahead

Lucid has put together a solid 2024, and through the first three months of the year, it sold more EVs than it did in all of 2023. It has three straight quarters of record deliveries.

Despite this, the news isn't all great for investors as the company gears up for its third-quarter earnings report. Management announced that it anticipates a larger-than-expected third-quarter operating loss: between $765 million and $790 million, more than the $752 million loss expected by analysts, according to financial data company FactSet.

But long-term investors can take the third-quarter report with a grain of salt. What's more important for them is the company's plan to launch a midsize crossover in roughly two years priced below $50,000 before shipping. For now, it's just a little good news that orders are about to be open for the Gravity, and if management can execute its production ramp-up, investors should be in for a solid 2025.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Amazon: if you invested $1,000 when we doubled down in 2010, you’d have $22,469!*
  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $42,271!*
  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $411,970!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of November 4, 2024

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
The Fed will sit still on October 28 — but 100 of 100 economists now expect a December hikeA Reuters poll run October 16-20 found 94 of 100 economists expecting the Fed to hold at 3.75-4.00% on October 28 — and all 100 expecting a hike in December, against less than half a month earlier. The market is close to the same price, with CME FedWatch at roughly 17% for October and 82.8% for December. With the Fed in blackout since October 17, here are the five dates that decide the rest of the year, what each one is priced for, and the two directions each can take.
Author  Irene Q.
Oct 22, Thu
A Reuters poll run October 16-20 found 94 of 100 economists expecting the Fed to hold at 3.75-4.00% on October 28 — and all 100 expecting a hike in December, against less than half a month earlier. The market is close to the same price, with CME FedWatch at roughly 17% for October and 82.8% for December. With the Fed in blackout since October 17, here are the five dates that decide the rest of the year, what each one is priced for, and the two directions each can take.
placeholder
Big Tech's $800 billion AI bill faces its first real test — free cash flow is the judgeAlphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
Author  Irene Q.
Oct 26, Mon
Alphabet and Microsoft report after the close on October 28, Amazon on October 29, with hyperscaler AI capex running near $800 billion a year. Meta's negative free cash flow and 9.40% drop on October 22 was the warning; this week's prints decide whether cloud growth and backlog can pay for the buildout. Here are the consensus numbers, the free-cash-flow table and the two-sided test.
placeholder
Anthropic files for a $2 trillion IPO — the $80.7 billion loss is the decoy, the $450 billion compute bill is the riskAnthropic publicly filed its S-1 on October 26, revealing $16.29 billion of first-half revenue (+1,304% year over year) and a $80.7 billion net loss — of which $72.4 billion is a non-cash convertible-note charge. The real number is the $450 billion of signed, mostly non-cancelable compute commitments. Here is what the filing says, why NVDA, ARM and MU are the tradeable read-through, and the conditions that decide whether the AI trade passes its first public valuation test.
Author  Irene Q.
Oct 27, Tue
Anthropic publicly filed its S-1 on October 26, revealing $16.29 billion of first-half revenue (+1,304% year over year) and a $80.7 billion net loss — of which $72.4 billion is a non-cash convertible-note charge. The real number is the $450 billion of signed, mostly non-cancelable compute commitments. Here is what the filing says, why NVDA, ARM and MU are the tradeable read-through, and the conditions that decide whether the AI trade passes its first public valuation test.
placeholder
Fed October Rate Decision Preview: Rate Hike Pause Has Become Consensus, How Will US Stocks, Dollar, and Gold React?The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide
Author  TradingKey
Oct 27, Tue
The Federal Reserve will announce its October interest rate decision at 14:00 Eastern Time on October 28, and Fed Chair Warsh will hold a press conference at 14:30. Markets currently wide
placeholder
Brent's $115 front month sits $4.6 above January — the $14 spread to WTI is the supply-risk premiumDecember Brent trades at $115.29 while January is $110.71, a $4.58 backwardation. The December Brent-WTI spread is $14.2, versus a $3-5 normal. That gap, not the headline, is where the Middle East supply risk is priced. Here is what the curve says, why the December contract's expiry on October 30 will mechanically cut the headline by $4.6, and the 108.81 neckline that decides the next move.
Author  Irene Q.
21 hours ago
December Brent trades at $115.29 while January is $110.71, a $4.58 backwardation. The December Brent-WTI spread is $14.2, versus a $3-5 normal. That gap, not the headline, is where the Middle East supply risk is priced. Here is what the curve says, why the December contract's expiry on October 30 will mechanically cut the headline by $4.6, and the 108.81 neckline that decides the next move.
goTop
quote