Lucid Motors Q2 2024 Earnings: Projections and Insights

Electric vehicle maker Lucid (NASDAQ:LCID) fell 3.06% on Friday, ahead of its second-quarter earnings results on August 5th, after the closing bell.

Wall Street, on average, expects the company to post a quarterly EPS of -$0.27 along with a revenue of $192.65M (+27.7% Y/Y).

Over the last three months, EPS estimates have seen zero upward revisions and five downward. Revenue estimates have seen five upward revisions and three downward.

For the second quarter, Lucid produced 2,110 vehicles and delivered 2,394 vehicles. This compares with the production of 2,173 units and delivery of 1,404 units last year.

The company, along with other players in the electric vehicle market, has witnessed a cooling demand amid higher borrowing costs, leading to a price war among manufacturers aiming to increase the appeal of their products.

“Despite a positive product lineup and potential growth with the Gravity SUV model, Lucid Group’s high cash burn rate and valuation pose risks,” said Investing Group Leader Jonathan Weber.

In May, Lucid announced a restructuring plan, under which about 6% of its workforce, about 400 jobs, was let go. The company said that would recognize a Q2 charge of about $19 million to $23 million and see total restructuring charges of about $21 million to $25 million.

During the previous quarterly earnings, Lucid missed both profit and revenue estimates, even as the company delivered 39.9% more cars in Q1 year-over-year.

Since the start of the year, Lucid has fallen by about 24.9%. Seeking Alpha’s Quant and sell-side analysts have recommended the company as a Hold.