3 Reasons Lucid Stock Is Sliding Despite Record Q1 Deliveries

Daniel Miller, The Motley Fool

Mon, Apr 7, 2025, 4:30 AM 4 min read

It mightiness look similar investors successful Lucid Group (NASDAQ: LCID) can't drawback a interruption these days. After years of disappointing results, dilatory transportation growth, and accumulation hiccups and delays, the young electrical conveyance (EV) shaper yet seemed to person momentum and maturation connected its side.

But contempt announcing the champion 4th of deliveries successful its history, the banal was sliding this past week. What gives?

During the archetypal quarter, Lucid delivered 3,109 vehicles, the highest quarterly full successful the young company's past and close successful enactment with Wall Street estimates. It produced 2,212 vehicles and had 600 further vehicles successful transit to Saudi Arabia for last assembly.

Despite the beardown results, however, it's wide that investors are disquieted astir overmuch much than near-term deliveries. Lucid besides announced it would rise $1 cardinal successful convertible debt, and superior raises tin often little the worth of a company's shares. Its offering of $1 cardinal successful 5% convertible elder notes owed 2030 volition settee connected oregon astir April 8.

The determination to rise superior shouldn't travel arsenic a immense surprise; the institution ended 2024 with astir $6.13 cardinal successful full liquidity, and Wall Street estimates the institution volition usage astir $3.5 cardinal successful 2025 alone.

After posting grounds deliveries during the archetypal quarter, investors mightiness deliberation the institution was poised to bushed estimates heading toward its May net report. That doesn't look to beryllium the case, however, arsenic it guided for first-quarter income of astir $234 million, and Wall Street was expecting person to $250 million.

Even if Lucid falls abbreviated of Wall Street expectations, missing estimates for 1 4th tin mostly beryllium taken with a atom of salt. That said, having grounds deliveries during the archetypal 4th and weaker gross guidance suggests weaker pricing oregon a little lucrative premix of conveyance models sold -- neither is large news.

Maybe the largest resistance connected the banal could beryllium President Trump's caller tariff announcement that, astatine the precise least, raised uncertainty for Lucid's proviso chain. It does nutrient a immense bulk of its EVs successful the U.S., which would debar the precocious enacted 25% tariff connected imported vehicles, but it besides imports automotive parts that volition beryllium taxable to a akin tariff adjacent month.

It's besides imaginable that investors were spooked successful the adjacent word by the caller absorption modulation erstwhile laminitis Peter Rawlinson stepped aside, and Marc Winterhoff was appointed CEO.

It's understandable that these 3 developments landing astatine the aforesaid clip would measurement connected the banal terms and offset immoderate optimism gained from grounds first-quarter deliveries. But there's nary crushed for investors to panic. Lucid simply was going to request to rise superior again, somewhat weaker guidance mightiness not beryllium a inclination passim 2025, and tariffs could end up hurting competitors much than Lucid.