Lucid Group Stock Intrinsic Value – Lucid Group’s Struggles Continue in 2023 as Production Volumes, Logistics Network, and Revenues All Face Challenges
March 1, 2023
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Lucid Group Stock Intrinsic Value – Lucid Group ($NASDAQ:LCID) has been struggling since the beginning of 2022 and its projected production volumes for 2023 have only worsened the situation. This year’s production volumes are currently forecasted to be 40% lower than initially expected, making it difficult for Lucid to meet its goals. This deficiency in production scaling has had a detrimental effect on the company’s logistics network as well, as delivery rates for Lucid vehicles are significantly lower than those of its competitors. Revenues for Lucid are also expected to suffer as average selling prices (ASPs) for its vehicles have been declining steadily. With this outlook of minimal growth beyond the 3,493 units produced in Q4, there is cause for concern regarding Lucid’s liquidity as it will be difficult to generate margins on vehicles this year.
This bleak financial landscape is further compounded by the fact that there is no clear solution in sight in terms of the production and logistical issues plaguing the company. The lackluster performance of Lucid Group in 2023 is sure to have long-term implications for the company and its investors. As production volumes, logistics network, and revenues all face significant challenges, it is unlikely that Lucid will experience any meaningful gains in the near future. As such, investors should proceed with caution as the future of Lucid’s performance remains uncertain.
Stock Price
Despite mostly positive news coverage, LUCID GROUP has continued to struggle in 2023 due to a variety of factors, including falling production volumes, a strained logistics network, and stagnant revenues. On Tuesday, LUCID GROUP stock opened at $8.7 and closed at $9.1, up by 4.2% from its prior closing price of 8.8. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Lucid Group. More…
| Total Revenues | Net Income | Net Margin |
| 608.18 | -1.3k | -338.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Lucid Group. More…
| Operations | Investing | Financing |
| -2.23k | -3.68k | 1.35k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Lucid Group. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.88k | 3.53k | 2.38 |
Key Ratios Snapshot
Some of the financial key ratios for Lucid Group are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 409.8% | – | -209.4% |
| FCF Margin | ROE | ROA |
| -542.8% | -21.0% | -10.1% |
Analysis – Lucid Group Stock Intrinsic Value
At GoodWhale, we have conducted an analysis of LUCID GROUP’s wellbeing. According to our proprietary Valuation Line, the fair value of the company’s share is around $689.1. However, currently they are traded at $9.1, which presents an impressive undervaluation of 98.7%. We recommend taking advantage of this unique situation and buying LUCID GROUP’s stock now. More…
Peers
Lucid Group Inc is an American automotive company founded in 2007 by Bernard Tse and Sam Weng. The company’s first car, the Lucid Air, was unveiled in December 2016. Lucid Motors is financed by the Public Investment Fund of Saudi Arabia and is headquartered in Newark, California.
Lucid Group’s main competitors are Tesla Inc, NIO Inc, and Rivian Automotive Inc. Tesla Inc is an American electric vehicle and clean energy company based in Palo Alto, California. NIO Inc is a Chinese electric vehicle company headquartered in Shanghai. Rivian Automotive Inc is an American electric vehicle manufacturer based in Plymouth, Michigan.
– Tesla Inc ($NASDAQ:TSLA)
Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla’s market cap as of 2022 is 689.96B with a ROE of 27.88%. The company specializes in electric vehicle manufacturing, battery energy storage from home to grid scale, solar panel manufacturing, solar roof tiles, and related products and services.
– NIO Inc ($SEHK:09866)
NIO Inc is a Chinese electric vehicle and technology company headquartered in Shanghai. The company was founded in 2014 by William Li. NIO designs, develops, manufactures, and sells electric vehicles in China, the United States, Germany, and the United Kingdom. The company also provides electric vehicle powertrains, batteries, and components.
NIO Inc has a market cap of 154.77B as of 2022. The company has a Return on Equity of -13.53%. NIO Inc designs, develops, manufactures, and sells electric vehicles in China, the United States, Germany, and the United Kingdom.
– Rivian Automotive Inc ($NASDAQ:RIVN)
Rivian Automotive Inc is an American electric vehicle manufacturer. Founded in 2009, the company produces electric vehicles, batteries, and components. Rivian’s market cap is 28.86B as of 2022 and its ROE is -23.66%. The company’s electric vehicles include the R1T pickup truck and the R1S SUV.
Summary
Lucid Group‘s stock price climbed on the day of news coverage regarding its struggles in 2023. The company is facing multiple challenges, including declining production volumes, an inefficient logistics network and dwindled revenues. In light of these developments, potential investors must be aware of the risks associated with investing in Lucid Group.
Alongside analyzing the company’s present condition, investors must also assess its financial health and capacity to address its current issues. Furthermore, an in-depth review of the company’s balance sheets, income statements, and other financial documents must be undertaken to determine its long-term viability.
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