Lucid Group Burn Rate Under Control As Profits Seem Possible By 2025


  • Recent news reports and rumors circulating on Lucid imply a takeover of the Saudi Public Investment Fund for the remaining stake in the BEV maker.
  • Lucid Motors is sufficiently funded through FY ’25 even when factoring a $3 to $4 billion capital burn rate.
  • Based on our model, we anticipate +36% upside to the stock over the next 12 months based on 80x FY ’25 adjusted dil. EPS.
  • We’re offering a buy rating on the stock, as the downside case is also limited by the Saudi Public Investment Fund, but upside to the model implies TSLA-like returns.
  • We think next quarter’s results could provide more support to the bull thesis in the form of margin guidance, and production surprises. Short cover rally likely continues into February.

Las Vegas Hosts Annual CES Trade Show

David Becker

Lucid Group, Inc. (NASDAQ:LCID) jumped by as much as +75% on the Friday session before eventually settling to a +40% gain on the session. Much of the optimism is tied to news reports of the automaker’s

Trade Theory Lucid Motors Financial Model

Author’s financial model and valuation estimate (Trade Theory)

Disclosure: I/we have a beneficial long position in the shares of LCID either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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