Lucid Group Expectations and Market Analysis

Lucid Group (NASDAQ:LCID) is set to announce its third-quarter results after the market closes today. Option prices indicate that there could be approximately a 13% price fluctuation following this report.

Traders are hoping for significant movements as they expect Lucid to make progress on production and delivery issues. Wall Street anticipates a loss of $2.30 per share and approximately $370.6 million in revenue for the third quarter.

GuruFocus has identified 5 warning signs regarding LCID. So, is LCID fairly valued? You can test the answer to this question with our free DCF calculator.

The company faces ongoing challenges, battling issues such as weak electric vehicle demand, high cash burn, and the need to scale production while improving margins. Investors will be closely watching for updates on the timing of the Gravity SUV and whether unit economics are improving.

On October 28, Lucid signed a technology agreement with Nvidia (NVDA) to equip its upcoming models with Level 4 autonomous capabilities. Level 4 means that the vehicle can self-drive in limited areas or conditions without human intervention, and this engineering work is planned to launch by the end of 2026 for a mid-size platform.

Analysts have differing opinions. Cantor Fitzgerald analyst Andres Sheppard raised his price target from $20 to $26 and maintained his rating as neutral after discussions with interim CEO Marc Winterhoff and CFO Taoufiq Boussaid. On the other hand, CFRA analyst Garrett Nelson downgraded his rating to strong sell following weak production and delivery results and set a price target of $10.