Lucid (LCID) Stock Heats Up Ahead of Earnings

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Lucid (NASDAQ:LCID) stock is in the green today, ahead of the release of the electric vehicle (EV) company’s first-quarter earnings on Monday, May 8 after the market close.

Earlier this week, it was announced that the U.S. Securities and Exchange Commission (SEC) had closed its investigation into Lucid and recommended that no enforcement action be taken against the company. In December 2021, the commission had sent Lucid a subpoena related to its forecasts and statements in connection to its special purpose acquisition company (SPAC) merger with Churchill Capital Corp IV.

Now, with the investigation thrown out, a major overhang has been removed from LCID stock just in time for earnings. Saudi Arabia’s Public Investment Fund (PIF) would be a major beneficiary if Lucid reports better-than-expected earnings. PIF is the largest shareholder of Lucid with 1.1 billion shares, equivalent to an approximately 60% ownership stake.

LCID Stock: Lucid to Report Earnings on May 8

For Q1, analysts expect $212 million in revenue, which would signify 266.76% year-over-year (YOY) growth. However, Lucid reported $258 million in revenue during Q4. Meanwhile, adjusted EPS is expected to tally in at a loss of 41 cents, while GAAP EPS is expected to be a loss of 36 cents. During Q1 2022, Lucid reported an adjusted EPS loss of 37 cents and a GAAP EPS loss of 5 cents.

Equally as important as revenue and EPS will be guidance for the following quarter and the current year. Analysts estimate Q2 revenue of $330 million — up by 238.54% YOY — and an adjusted EPS loss of 35 cents. For full-year 2023, revenue is expected to be $1.365 billion — signaling yearly growth of 124.38% — with an adjusted EPS loss of $1.44 and a GAAP EPS loss of $1.40.

During Q4, Lucid guided for 2023 production of between 10,000 to 14,000 vehicles while analysts had expected between 20,000 and 22,000 vehicles. Last year, Lucid produced a total of 7,180 vehicles, beating its own guidance for 6,000 to 7,000 vehicles. Of those, Lucid delivered 4,369 vehicles during the year.

A short squeeze could also be in the books if Lucid beats on earnings. As of April 15, there were 143.40 million shares of LCID sold short, which equates to a significant short interest of 21.3%.

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

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