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Wednesday, September 27, 2023

Lucid Group, Inc. (LCID) Stock Plunging in Aftermarket, Here’s Why

Lucid Group, Inc. (LCID), an automotive company relying on technology, has slumped 14.49% in aftermarket trading session. As a result, the stock was trading at $24.78 when last checked. During Monday’s regular trading hours, the stock surged by 9.98 percentage points and closed the day at 28.98. The stock has plunged in aftermarket owing to the announcement of financial results, which depicted that the company had missed on its expected earnings, making it hard for the stock to continue the momentum it gained during Monday’s mid-day session.

Q4 and FY 2021 Results

On Monday, after the closure of the market, LCID announced the results for Q4 and FY 2021. The revenue for Q4 2021 was $26.39 million versus $3.6 million for Q4 2020. The net loss suffered during Q4 2021 was $1.04 billion (or $0.64 per share) compared to $311 million (or $11.11 per share) for Q4 2020. The revenue generated during FY 2021 was $27 million compared to $3.9 million during FY 2020. The net loss suffered during FY 2021 was $2.5 billion (or $6.41 per share) compared to $791 million (or $28.42 per share) for FY 2020.

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Updated Outlook for FY 2022

LCID also provided an update regarding the outlook for FY 2022. The company expected that it would be able to produce 12,000 to 14,000 vehicles during the year. Alongside that, the company also confirmed that it had the expansion of a 2.85 M square feet manufacturing facility in Casa Grande, Arizona, which is well on track. Also, the company intends to build a new manufacturing facility in Saudi Arabia.

Comments from LCID CEO

Peter Rawlinson, CEO, and CTO of LCID commented that with steep growth in its business, the company is confident that it’s building a quality foundation for itself. The company has been awarded the 2022 MotorTrend Car of the Year. The updated outlook by the company is the epitome of the unrelenting focus of the company over delivering the highest quality of products.

What’s Over the Horizon for LCID?

Looking ahead, analysts are of the view that LCID stock holds several positive signals currently. However, they are not enough for it to be considered as a buy candidate. Hence, at the current level, the stock should be held while waiting for any further developments.

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