Lucid Group, Inc. (NASDAQ:LCID) shares are trading lower Monday, extending losses of more than 35% over the past month.
What To Know: On Nov. 5, the company reported third quarter earnings. Specifically, the company reported an adjusted loss of $2.65, missing the consensus estimate of a $2.27-loss. In addition, the company reported sales of $336.58 million, missing the consensus estimate of $379.11 million.
Lucid cranked out 3,891 vehicles in the third quarter, plus more than 1,000 extra units built for final assembly in Saudi Arabia. It delivered 4,078 vehicles during the same stretch. So far this year, the company has produced 9,966 vehicles and delivered 10,496.
Lucid ended the quarter with about $4.2 billion in total liquidity.
Recently, Stifel analyst Stephen Gengaro maintained a Hold rating on Lucid and lowered the price target from $21 to $17.
LCID Analysis: Lucid stock is trading near its 52-week low of $12.48, reflecting a challenging market environment for the electric vehicle manufacturer. Year-to-date, Lucid has seen a significant decline of 58.3%, indicating ongoing struggles to gain traction in a competitive landscape dominated by larger players like Tesla and Rivian.
From a technical perspective, Lucid is trading approximately 36.4% below its 50-day moving average of $19.89 and about 45% below its 200-day moving average of $23.00. This positioning suggests a bearish trend, with the stock firmly entrenched in oversold territory, as indicated by an RSI of 21.34. Such low RSI levels often signal potential for a reversal; however, the current momentum suggests that further downside could still be possible before any meaningful recovery takes place.
With no clear support levels established in the recent price action, the 50-day moving average may serve as a critical threshold for buyers, while the psychological level of $12 could also provide some temporary support. Resistance remains elusive, with the stock facing significant hurdles before approaching the 52-week high of $36.39. This lack of resistance levels highlights the potential for volatility as traders react to market sentiment and news.
Lucid’s market capitalization of $4.19 billion positions it as a mid-sized player in the electric vehicle sector, significantly smaller than competitors like Ford and Tesla. As the company navigates its current challenges, investor sentiment will likely hinge on upcoming earnings reports and any strategic announcements that could signal a turnaround.
In this setup, the proximity to the 52-week low and the oversold RSI present a critical juncture for Lucid. A decisive move above the 50-day moving average could indicate a potential reversal, while failure to hold above current levels may lead to further declines, emphasizing the need for a clear catalyst to shift the current bearish sentiment.
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LCID Price Action: At the time of writing, Lucid shares are trading 3.83% lower at $12.42, according to data from Benzinga Pro.
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