Shares of Lucid Group (LCID 5.22%) were getting a bump today after Morgan Stanley issued a note on the stock that essentially said that the bear case for the luxury electric vehicle (EV) maker was already priced in heading into its fourth-quarter earnings report.
The company also said today it is lowering prices on its Lucid Air EV between 1% and 10%, a reflection of falling prices in the industry.
As a result, Lucid shares had gained 5.7% as of 3:25 p.m. ET on a day when EV stocks were up broadly.
Image source: Lucid.
Maybe things can’t get worse for Lucid?
In a note out this morning, Morgan Stanley’s Adam Jonas said Lucid’s fourth-quarter earnings report was unlikely to bring new negative information. Though he maintained an underweight rating on the stock, he acknowledged that Lucid’s value as a strategic partner may be rising. Lucid has a deal to supply electric powertrains to Aston Martin, and it could expand on that with other brands.
Separately, Lucid said it had lowered prices on the Air sedan for the second time since August. While that news isn’t necessarily bullish for the stock, it could boost Lucid’s sales at a time when the company is trying to prove there’s adequate demand for its vehicles as it ramps up production.
What to expect next week for Lucid
Lucid is set to report fourth-quarter earnings after hours on Feb. 21. The company had previously announced production and deliveries numbers for Q4, reporting 2,391 vehicles produced and 1,734 vehicles delivered. It came up short of a previous goal to produce 10,000 vehicles this year.
For the Q4 report, analysts see revenue falling 30.8% to $178.3 million and its loss per share narrowing from $0.43 to $0.29.
Investors will be paying close attention to the company’s forecast for 2024 as continued production growth and improving profitability will be key for the stock to make a recovery.
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
