It's been an eventful week for investors in Lucid Group (LCID -1.12%). The electric vehicle (EV) stock was already tanking ahead of earnings after getting a massive analyst downgrade when it dealt a big blow to investor confidence by announcing its CEO's sudden departure. That overshadowed Lucid's big production guidance for 2025, and the stock plunged this week -- it was trading 27% lower through Friday noon, according to data provided by S&P Global Market Intelligence. Here's all you need to know.
Lucid's fourth-quarter revenue surged 49% year over year to $234.4 million, and the company narrowed its net loss to $0.22 per share from $0.29 a share during the quarter. 2024 is a "transformational year" for Lucid, according to interim CEO Marc Winterhoff -- "interim" because alongside its numbers, Lucid also announced the departure of its CEO, Peter Rawlinson, and said it is looking for a new CEO while Winterhoff spearheads the company.
As is often the case, the abrupt leadership change seems to have spooked investors.
Lucid stock took a big hit earlier this week, even before it announced its numbers or a new CEO, after Redburn Atlantic analyst Tobias Beith slashed the stock's price target to only $1.13 a share from $3.50 per share. Beith believes Lucid will have to significantly boost volumes for its to-be-launched midsize platform to retain its cost advantage and vehicle efficiency, which will mean significant cash outflows for the company. Beith is also not too optimistic about Gravity SUV gross margins. Lucid recently started delivering the Gravity SUV and is betting heavily on it for growth.
Lucid expects to more than double its production to 20,000 EVs in 2025, but investors aren't convinced given Lucid's poor execution history and the uncertainty that comes with a new leader at the helm.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.