Lucid Investors Get Hit With Double Whammy

Momentum Shift - Lucid Group has recently gained momentum with three consecutive quarters of record deliveries, contrasting with Rivian's production challenges [1][2] - Rivian experienced a 36% decline in deliveries during Q3 2024 and reduced its production guidance from 57,000 to 47,000-49,000 vehicles [2] - Lucid achieved a 91% increase in Q3 deliveries, marking its third straight quarter of record-setting delivery numbers, partly due to significant incentives [2] Speed Bumps - Lucid announced a larger-than-expected Q3 operating loss, projected between $765 million and$790 million, exceeding analysts' expectations of $752 million [3] - The company plans to sell over 260 million shares in a public offering, with an additional 375 million shares to be sold to its majority shareholder, Saudi Arabia's Public Investment Fund (PIF), leading to shareholder dilution [3] Financial Metrics - Lucid Group's shares outstanding stand at 2.319 billion [4] - The company's quarterly cash and equivalents are reported at$1.354 billion [4] Strategic Focus - Long-term investors should focus on the execution of Lucid's upcoming Gravity SUV EV launch and its production and delivery ramp-up in the coming months [5] - Lucid plans to launch a midsize crossover priced below $50,000 within approximately two years, signaling its next strategic step in the EV market [5] Market Position - Lucid's recent challenges, including shareholder dilution and larger-than-expected losses, have driven its stock price down by nearly 27% over the past month [5] - The company remains a highly speculative and volatile stock, with significant price swings, and is recommended to be a smaller position in portfolios [5]