Lucid Group (LCID) is set to post fourth-quarter earnings on Tuesday, after markets close.
Wall Street expects the California-based EV maker to post EPS of -$2.67 on revenue of $459.54 million, implying a rise of 96% during the quarter.
Demand for electric vehicles in the U.S. has seen some weakness due to tariffs and a tough economic environment, leading to companies including Lucid and Tesla to slash prices to get more customers.
Recently, Lucid has also reportedly laid off 12% of its U.S. workforce to improve profitability, even though it ramped up production and deliveries in Q4. The company also plans to launch a new midsize crossover on its Atlas platform while continuing to scale Gravity output and improve unit economics in 2026.
The company’s stock has lost over 9% so far this year, compared to the 0.9% rise in the broader S&P 500 Index.
Seeking Alpha analysts and Wall Street are cautious and rated the stock a Hold. Seeking Alpha’s Quant ratings consider it a Strong Sell.
Stifel analyst Stephen Gengaro said headwinds include improved production that still leaves Lucid in “prove-it” mode; uncertainty around the timing and path to achieving positive gross margin and EBITDA; pressure from elevated interest rates on sales and pricing; continued high cash burn; and U.S. EV policy changes that weigh on both Lucid and the broader EV sector.
A recent Seeking Alpha analysis also noted that even though Lucid is not expected to turn the corner on profitability anytime soon, still, “the company’s upfront investments begin to pay off, deliveries and revenue continue to surge, and new partnerships are announced, it seems as though the firm is starting to stand on solid ground.”
Over the last one year, Lucid has beaten EPS estimates 50% of the time and has beaten revenue estimates 25% of the time.
Over the last three months, EPS estimates have seen no upward revisions, compared to three downward revisions, while revenue estimates have been revised upwards once versus three downward moves.