$Lucid Group Inc(LCID)$ IPO debuted on July 26, as Churchill Capital Corp. IV took the luxury electric-vehicle leader public in a highly anticipated initial public offering. Is Lucid Motors stocka buy rightnow after reporting fourth-quarter earnings results?
Lucid Motors Stock IPO
In February, Churchill Capital IV — a special-purpose acquisition company (SPAC) — announced a deal to take Lucid Motors public, valuing the company at $24 billion. The company is going public "to accelerate into the next phase of our growth," Lucid Motors CEO Peter Rawlinson said.
A SPAC, also known as a blank-check company, is an alternative to a traditional initial public offering. These blank-check companies have no assets beyond cash. They trade on stock exchanges and then merge with private companies, taking those companies public.
Lucid Motors stock began tradingon July 26 under the ticker symbol LCID on the Nasdaq.
Lucid Motors Stock Fundamental Analysis: The Lucid Air
Lucid Motors started delivering its Lucid Air — a high-performance, ultraefficient luxury EV sedan — in late Oct. 2021, according to thecompany. The company expects to roll out its Gravity performance luxury SUV in 2023. The Lucid Air started in production in late September.
In a slide deck filed with the U.S. Securities and Exchange Commission July 13,Lucid Motors toutedmore than 10,000 reservations for the Lucid Air, representing $900 million in anticipated sales. It claimed the Air beats the Tesla Model S andAmazon-backed EV startupRivian's R1T in battery efficiency, which it calls the ultimate measure of EV technology. It also claims the Air beats luxury EVs from Jaguar, Porsche and Audi on that metric.
Lucid touts EV technology it developed in-house. It describes the Lucid Air as the "quickest, longest-range, fastest-charging electric car in the world," delivering 500 miles of range. The Environmental Protection Agency hasn't certified that range yet. The Air also boasts high-end features such as a "glass cockpit." The Lucid Air features an autonomous driving system using 32 sensors, including long-distance Lidar, a safety technology that Tesla long avoided.
The first fully loaded Air will cost around $160,000, including federal subsidies. Cheaper versions will be released, with a $70,000 version expected in 2022, according to theWall Street Journal.
LCID Stock Technical Analysis
LCID stock is trading about 60% off its highs. The stock surged more than 100% past a 28.49 buy point in acup-with-handle baseon Nov. 17, but huge gains were erased. Shares are sharply below their 50-day line and are now also below their long-term 200-day line.
According to the IBD Stock Checkup,Lucid Motors stockshows a weak 35 out of a perfect 99IBD Composite Rating. The Composite Rating helps investors easily measure a stock's fundamental and technical metrics. Weak IBD Composite Ratings are normal for new issues.
Lucid Motors Stock News
On July 23, Lucid Motors shareholders voted to approve the merger of the blank check company.
In mid-July, the company said it had finished its preproduction phase after a series of delays. "The testing and validation of Lucid Air is progressing well," CEO Peter Rawlinson said on the call, according toBloomberg. "It's on track for the second half of 2021 start of production for customer deliveries."
On Sept. 1, the lock-up period for PIPE (private investment in public equity) investors expired, allowing them to sell shares. The stock plunged nearly 11% in response.
On Sept. 16, thecompany saidits Lucid Air sedan received an EPA Rating of 520 miles of range. The Lucid Air beats the Tesla Model S Long Range by more than 100 miles.
On Sept. 29, thecompany's first luxury Lucid Air sedansrolled off the assembly line in Arizona. Lucid expects reservation holders of Lucid Air Dream Edition models will begin receiving their vehicles in late October. Thecompany saidit has received more than 13,000 reservations for Lucid Air and increased the planned total production quantity of the Dream Edition to 520 vehicles.
On Oct. 21, CEO Peter Rawlinson says it will launch Lucid Air electric sedans in the Middle East and Europe next year, while launching in China in 2023, according to Reuters.
On Oct. 30, the first group of Lucid Air Dream Edition reservation holders took delivery of their vehicles.
On Dec. 6, the company said the Securities and Exchange Commissionhas requested documentsrelated to a probe of its blank-check deal with Churchill Capital.
On Dec. 9, the company announced its intent to offer $1.75 billion in convertible senior notes and Lucid shares dived over 18% in response.
On Jan. 3,Green Car Reportsnamed the Lucid Air the "Green Car Reports Best Car To Buy 2022." Lucid stock surged over 7%.
Lucid Motors Earnings
On Feb. 28, Lucid Motorssignificantly missed fiscal fourth-quarter earnings estimatesand slashed 2022 production outlook. Lucid stock plunged almost 14% in response. Lucid lost 64 cents a share on revenue of $36.7 million. The company also updated 2022 production guidance. It's now forecasting 12,000-14,000 vehicles, vs. 20,000 earlier.
"This reflects the extraordinary supply chain and logistics challenges we've encountered," CEO Peter Rawlinson said in a release.
As of Feb. 28, Lucid had reservations for more than 25,000 Lucid Air EVs. That's up from 13,000 at the end of Q3 2021. It has produced 400 EVs and delivered 300 EVs, after starting deliveries in Q4 2021.
Is Lucid Motors Stock A Buy Right Now?
Lucid Motors stock is a promising long-termEV stockthat started deliveries of its first electric vehicle in late Oct. 2021. Shares of Lucid Motors are more than 60% off their 52-week high and not at a proper buy point, so the stock is not a buy right now. Keep in mind the company doesn't have any earnings, so it is more speculative. Wait for a new base to offer a new buy point before buying shares.
Source: Investors
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