Lucid stock levels to watch as LCID prepares for Q2 earnings release

Lucid Motors (NASDAQ: LCID) has been busy lately by opening new retail locations around the globe in an attempt to increase its presence and brand awareness. 

The latest retail location is in Pacific Northwest, which the company announced on June 24 is Lucid Studio, located at University Village in Seattle, and marks the firm’s 28 Studio and service center locations open in North America.

Moreover, the expectations for the next earnings release, after the market closes on August 3, are high, with investors probably eying new orders. Equally important, the company recorded 30,000 reservations for Lucid Air for 2022, so a strong growth for the second half of the year could be a boon for the share price.  

Due to the fact that a successful second quarter (Q2) is likely to contribute to a healthy rise in earnings for the second half of the year, Finbold has carried out an analysis of key levels that should be monitored closely.

LCID chart and analysis

In the last month, LCID has been trading between $16.35 and $21.78, with both the long-term and short-term trends negative. Recently, the shares closed below all daily Simple Moving Averages (SMAs), with a support line at $17.31 and a resistance zone ranging from $19.83 to $19.99.  

Meanwhile, analysts rate the shares a hold, predicting that the average price in the next 12 months could reach $24, which is 32.67% higher than the current trading price of $18.09.

In the end, the biggest risk Lucid could be facing are supply chain pressures, which could affect the production ramp-up. The electric vehicle (EV) startup already lowered its production target earlier this year, which resulted in the stock plummeting. If Lucid cuts its deliveries and expectations once again, the shares could tumble further. 

On the whole, another big risk that is affecting companies is the rise of inflation, and as the recent earnings in the retail sector highlighted, inflation is affecting consumer spending behaviors. Higher inflation and cost increases for raw materials and chips could dent demand and revenue for Lucid. 

Thus investors should wait for the earnings to gain more clarity on how these various headwinds will affect the company, before deciding to invest.

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