Lucid Group Inc (LCID)

[georgejjl]

Shares of Lucid Group have been unfairly punished.
Reason for the last downleg was a lowered production forecast for FY 2022.
Lucid Group is still growing very quickly and the stock is a steal.
Man inserts a power cord into an electric car for charging in the nature
SimonSkafar/E+ via Getty Images

Shares of Lucid Group (NASDAQ:LCID) have trended downwards after the company submitted its earnings card for the fourth-quarter. Lucid Group lowered its production guidance for FY 2022 by a significant margin, which helped to create pressure on the stock. Because of this drop, I believe Lucid Group’s prospects in the luxury segment EV market are now undervalued and a renewed engagement can make sense here!

Lucid downgrades production guidance

The EV startup disappointed lately by lowering its production guidance for the current fiscal year. The startup is looking to produce, according to its revised guidance included in last quarter’s earnings card, just 12-14 thousand electric vehicles this year, including the Lucid Air base model, the Lucid Air Grand Touring, the Air Dream Edition Performance and the Air Dream Edition Range. The company previously expected to produce about 20 thousand units this year, meaning the new production guidance for FY 2022 implies a decline of at least 30%. So far, Lucid Group delivered 125 electric vehicles and will, despite a revised production guidance, manufacture and produce a material number of EVs this year.

Lucid also said that it had amassed about 25 thousand reservations for its different EV models at the time of the earnings release at the end of February. In November, Lucid had about 17 thousand reservations. Total reservations now have a combined value of $2.4B.

Good luck and GOD bless,