Lucid shares declined after the report, but it is too early to conclude.
Lucid Motors (LCID) shares continued their decline on Tuesday after an electric car startup led by a former Tesla CTO reported its quarterly results. As a result, it is difficult for investors and analysts to evaluate Lucid today.
Electric vehicle maker Lucid Motors (LCID) reported its results for the quarter ended June 30, 2021, after the close of trading on Monday.
Lucid Motors continued its 1.18% decline on Tuesday, down 61% from its February high. However, stocks have pulled back from their lows in May, gaining 16.4% over the past three months.
Since Lucid plans to start production only this half, the Q-10 financial report did not tell investors much.
At the end of the quarter, the company had assets of 207 million shares outstanding. Still, after Lucid went public on the NASDAQ exchange through a merger with Churchill Capital in July, about 1.6 billion Lucid shares are already in circulation.
In its report, the company did not report income, publishing losses from operating activities. The balance for the second quarter was about $ 2 billion in cash, but after closing the merger, Lucid received about $ 2.4 billion net of fees. As a result, lucid has about $ 4.4 billion in cash on its balance sheet today, making it one of the most capitalized EV startups. The company will use these funds to build and sell its cars.
Lucid plans to start producing its first Lucid Air vehicle this year and ramp up production in 2022.
Air will be at Lucid’s new manufacturing facility in Arizona.
Lucid Assessment Difficulty
Lucid Motors had a market capitalization of about $ 37 billion as of the close of trading on Tuesday.
The company has no income until it completes the sale of its first batch of cars, while it is likely to suffer losses for a long time until production reaches large-scale rates and reaches the level of profitability.
Generate about $ 2.2 billion in sales in 2022 and projects revenues of nearly $ 23 billion, about a 10-fold increase – by 2026.
Bloomberg reported that Wall Street analysts have yet to begin giving their estimates for Lucid, which is due in the coming weeks.
At the same time, some experts believe that the problem of Lucid shares may be low liquidity since there are few institutional shareholders among the shareholders.
The company has one largest shareholder – the State Investment Fund of the Kingdom of Saudi Arabia, its 63% ownership gives it almost complete control over the future of Lucid.
However, May is not perfect for retail shareholders (owning a 33% stake in Lucid), as their interests may be at odds with the investment fund.
Investors also want to wait for the first factory release of the Lucid Air to see if the company’s valuation of its car in its investor presentation matches the reality. The company said Lucid Air’s battery technology would allow an electric vehicle to travel approximately 830 km (517 miles) – the most extended range in the electric vehicle market today.
