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On Wednesday, BofA Securities maintained its Underperform rating on Lucid Group Inc . (NASDAQ: NASDAQ:LCID) with a steady price target of $1.00. Lucid’s adjusted earnings per share (EPS) for the first quarter of 2025 stood at a loss of $0.20, which was an improvement over BofA’s projection of a $0.24 loss and the Bloomberg consensus of a $0.22 loss. According to InvestingPro data, the company remains unprofitable with a significant -114% gross margin over the last twelve months. The company’s reported revenue of $235 million fell short of both BofA’s $245 million forecast and the consensus estimate of $249 million.
Lucid had previously reported delivering 3,109 vehicles in the first quarter, a figure that did not meet initial expectations. The average revenue per unit came in at $72.4k, lower than the anticipated $75.6k. Despite the challenges, InvestingPro analysis shows the company achieved 35.7% year-over-year revenue growth. The adjusted EBITDA loss of $563 million was a better outcome than BofA’s estimated loss of $641 million and the consensus loss of $574 million, aided by reduced operating expenses. This included a reversal of $35 million from previously recognized stock-based compensation.
The electric vehicle manufacturer concluded the first quarter with $3.6 billion in cash, cash equivalents, and short-term investments. This represents a decrease from the $4.0 billion it had at the end of the fourth quarter in 2024. According to InvestingPro analysis, while Lucid maintains a strong current ratio of 4.18, the company is quickly burning through cash. In April, Lucid completed a private offering of 5.00% convertible senior notes due in 2030, raising $1.1 billion. The company used the proceeds from this offering to repurchase $1.0 billion of its 1.25% convertible senior notes that were set to mature in 2026. For deeper insights into Lucid’s financial health and 10 additional exclusive ProTips, subscribers can access the comprehensive Pro Research Report on the platform.
In other recent news, Lucid Group Inc. released its Q1 2025 financial results, showing an earnings per share (EPS) of -$0.20, which was better than the forecasted -$0.23. However, the company reported revenues of $235 million, falling short of the expected $246.01 million. Despite the revenue miss, Lucid delivered 3,109 vehicles, marking a 58% increase year-over-year. The company ended the quarter with $4.56 billion in cash and investments, maintaining strong liquidity. Lucid’s gross margin improved from -134.3% to -97.2% year-over-year, indicating progress toward profitability. In strategic moves, Lucid has set a production target of 20,000 vehicles for 2025 and plans to invest $1.4 billion in capital expenditures. Analysts from various firms have shown interest in Lucid’s technology, with some discussions focusing on potential collaborations and technology licensing. Additionally, Lucid’s strategic initiatives, such as launching the Lucid Gravity and forming partnerships for technology development, are positioning the company for growth in the competitive electric vehicle market.
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