4 Green Flags for Lucid Group's Future
Lucid Group (NASDAQ: LCID) has disappointed lots of investors since it went public by merging with a special purpose acquisition company (SPAC) last July. The maker of luxury electric sedans initially claimed it could produce 20,000 vehicles in 2022. But it reduced that goal to 12,000-14,000 vehicles in February, then halved that target to 6,000-7,000 vehicles in August. As of the third quarter, it's only delivered 2,562 vehicles since it started its production last September.
As Lucid struggled to produce new vehicles, its potential customers started to cancel their reservations. It ended the third quarter with about 34,000 reservations, compared to 37,000 reservations in the second quarter, and that figure could easily shrink again in the fourth quarter. It also continued to drown in red ink: It generated $350 million in revenue in the first nine months of 2022, but it also racked up a net loss of $1.83 billion.
Image source: Lucid.
Source Fool.com
