Shares of Lucid Group Inc. were driven into record-low territory Tuesday, after the electric-vehicle maker reported disappointing third-quarter production and delivery data.
The data prompted CFRA analyst Garrett Nelson to turn bearish on Lucid’s stock, as his new, lower price target implied nearly 20% downside from current levels.
The stock
LCID,
dropped 6.5% in afternoon trading, toward its first-ever close below the $5 level.
The California-based company said before the opening bell that it produced 1,550 vehicles in the third quarter, down 28.7% from the second quarter and down 32.1% from the same period a year ago.
The company said it also had over 700 vehicles in transit to Saudi Arabia for final assembly.
Lucid delivered 1,457 vehicles during the quarter, up 3.8% from the second quarter and 4.2% more than the same period a year earlier.
CFRA’s Nelson downgraded the stock to sell from hold, saying the data was “extremely disappointing.” He slashed his stock-price target to $4 from $7, with the new target set 18.9% below current levels.
“The lack of detail regarding the company’s still-sluggish volumes makes this a difficult release to interpret,” Nelson wrote in a note to clients. “While an equity offering and private placement completed in Q2 helped boost its liquidity position, we find [Lucid’s] cash-burn rate highly alarming and see the company facing daunting headwinds for the foreseeable future from a combination of weak demand and ongoing pricing pressures.”
The company is slated to report full third-quarter results on Nov. 7.
The stock has tumbled 29.8% over the past three months, while the Global X Autonomous & Electric Vehicles ETF
DRIV,
has shed 15.1% and the S&P 500 index
SPX,
has given up 3.7%.
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