Lucid Motors (NASDAQ: LCID) is scheduled to release its Q2 earnings results on Monday, August 7, after the bell.
The average estimated earnings per share is a loss of 34 cents, according to Refinitiv, with a revenue of $184 million based on seven estimates. The earnings per share is similar to the same period last year. However, the estimated revenue is up by 89%.
Disappointing deliveries in Q2
Lucid delivered 1,404 of its electric Air luxury sedans in the second quarter, while analysts expected 2,000 deliveries. The company produced 2,173 cars in the second quarter, raising concerns about demand.
It’s not all bad for LCID, though
Lucid recently announced a strategic partnership with Aston Martin where Lucid will sell powertrain components and battery systems to the British company. In return, Lucid will take a 3.7% stake in Aston Martin and $232 million in phased payments.
Even though laying off about 18% of its workforce in late March could be a worrying sign for some investors, it will slow cash burn. The company said it had enough cash to continue operations until at least the second quarter of 2024 during the company’s Q1 earnings report.
Recently, DNB Asset Management, a fund that manages $86 billion in assets, doubled its investment in Lucid Group while slashing positions in General Motors (NYSE: GM) and Ford Motor (NYSE: F) in the second quarter. This means not everyone considers the news about Lucid to be all bad.
Analyst ratings remain neutral
Analysts from Bank of America and Citi have maintained or resumed their neutral rating with a price target of $8. That’s 16% higher than the current price of $6.89.
LCID analyst ratings. Source: Interactive Brokers Fundamentals Explorer
LCID stock technical analysis
The stock price has been sliding since late 2021 when one LCID share exchanged hands for $58. Since then, the stock price has found its footing at the $6 price level. For most of 2023, the price bounced off between $6 and $8. A break on either side would push the price by another $2, which is the largest distance within the current range.
LCID stock daily price chart. Source: StockCharts.com
This means a break above $8 will likely push the price to $10 and a break below $6 to $4. The downward pressure is still strong and equally a strong catalyst is needed for a break out higher.
Despite the headwinds, LCID is up 11% year to date.
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