Lucid stock3/11/2023 Rivian Automotive (NASDAQ: RIVN), the electric truck maker that has manufactured over 5,000 vehicles to date and plans to produce 25,000 this year, trades at just 17 times this year's sales. The stock was already expensive prior to its latest earnings report, but its recent production cut caused its forward price-to-sales ratio to double. But the company hasn't demonstrated it can hit that target yet, and the midpoint of its revised goal of 6,000 to 7,000 EVs would only translate to about $615 million in revenue this year.Įven after its post-earnings decline, Lucid still has a market cap of about $30 billion, nearly 50 times the revenue it might generate this year. Lucid says its 37,000 reservations could generate $3.5 billion in potential sales if they are all delivered. But does Lucid's stock still deserve a premium valuation? The automaker ended the second quarter with $4.6 billion in cash, cash equivalents, and investments, which Chief Financial Officer Sherry House says will be "sufficient to fund the company well into 2023." Its manageable debt-to-equity ratio of 0.9 also gives it some breathing room to raise more cash with new debt offerings. That total also doesn't include the Saudi Arabian government's recent agreement to buy up to 100,000 of Lucid's vehicles on an incremental basis. On the positive side, Lucid's total reservations surpassed 37,000 by the end of the second quarter, compared to 30,000 reservations in the first quarter, 17,000 last November, and 13,000 last September. But Rawlinson said Lucid had "identified the primary bottlenecks" and was restructuring its operations to tackle those issues. Reservations are still risingĬEO and chief technical officer Peter Rawlinson attributed the EV maker's sluggish production during the quarter to supply chain and logistics challenges. Is Lucid's stock still worth buying after that messy quarter? Let's review the company's challenges, expectations, and valuations to decide. Lucid's net loss more than doubled year over year from $261.7 million to $555.3 million, or $0.33 per share, but still topped the consensus forecast by $0.08. It also raises further questions about the SPAC model amid cautionary examples that include Nikola and Lordstown Motors.The Lucid Air sedan. This marks a tumultuous turn of events for a company that had overtaken Detroit’s Big Three carmakers in terms of market capitalization. Lucid was once known as Atieva, and its battery supply business still operates under that brand name. and certain projections and statements,” CFO Sherry House said in a regulatory 8-K filing with the SEC, without specifying further. “The investigation appears to concern the business combination between the company (formerly known as Churchill Capital Corp. Shares in Lucid later rebounded from the lows, trading down 9% at $42.85 each by mid-morning. IV, a special purchase acquisition company (SPAC), first announced in February. Shares plunged by over 15% in early trading, as the company indicated the probe seemed linked to forecasts made as part of its reverse merger with Churchill Capital Corp. The company, which was previously worth more than industry giant General Motors, said on Monday that authorities had requested “ the production of certain documents” related to an investigation by the SEC, adding it was cooperating fully.
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |