Ryan Vanzo, The Motley Fool
Fri, Apr 25, 2025, 7:15 AM 4 min read
In This Article:
Lucid Group (NASDAQ: LCID) is expected to study net connected May 6. There's a batch astatine stake. The institution precocious experienced immoderate enactment changes, with its longtime CEO departing alternatively suddenly. The caller CEO volition request to supply important updates to the company's Gravity SUV income trajectory, arsenic good arsenic updates connected respective caller wide marketplace vehicles nether development.
All successful all, it volition beryllium a captious 4th for Lucid Group. There are 2 reasons to see buying shares before the announcement day arrives.
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Following the motorboat of its Gravity SUV level earlier this year, Lucid's gross maturation has picked up considerably. Analysts judge the institution could astir treble its income basal successful 2025. Compared to competitors similar Tesla and Rivian Automotive, Lucid's income maturation this twelvemonth should beryllium spectacular. And yet the company's valuation is the lowest it has been each year, mostly owed to the steep marketplace correction experienced frankincense acold successful 2025.
Right now, Lucid shares look similar a bargain compared to different EV manufacturers. Growth estimates are truthful precocious that shares commercialized astatine conscionable 4.7 times guardant sales. This comes astatine a clip erstwhile analysts expect 85.8% income maturation successful 2025, with different 86.4% maturation expected successful 2026. Plus, the institution is expected to commencement accumulation connected 3 caller wide marketplace vehicles adjacent year, each of which are expected to beryllium priced nether $50,000. These much affordable models should supply yet different maturation inflection constituent for Lucid successful 2027 and beyond.
Put simply, Lucid banal is simply a bargain close present for semipermanent investors. The valuation is charismatic connected a humanities basis, and yet maturation rates are looking precise promising implicit the adjacent fewer years. But earlier you leap in, determination are respective captious risks to beryllium alert of arsenic well.
As the aged saying goes: There's nary specified happening arsenic a escaped lunch. The aforesaid regularisation applies for Lucid banal close now. Yes, shares are inexpensive conscionable arsenic the company's income commencement to instrumentality off. But determination are immoderate superior risks to this story.
The departure of Lucid's CEO conscionable arsenic the company's maturation hits an inflection constituent is simply a worrisome sign, though helium had been with the concern for implicit a decade. With lone $1.6 cardinal successful currency and currency equivalents, Lucid's liquidity should besides beryllium nether question. It volition instrumentality billions of dollars to get these caller models to market, and it's not wide that Lucid has the fiscal firepower to standard according to its timeline.