A Lucid Stock Analysis - LCID's Biggest Problem
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Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at https://www.nanalyze.com/nanalyze-weekly/. This episode is pulled from a YouTube presentation. View the original presentation at https://youtu.be/nu2ZdwKYjvg. Our Lucid stock analysis looks at the biggest problem facing LCID stock holders - a business that cannot sell a product for more than it costs to produce. In 2022, for every dollar spent on cost of goods sold or COGS, Lucid recouped just 37 cents. That's not a business. We compare Lucid's numbers to what Tesla looked like shortly after their IPO. The difference with Tesla is that they always had a positive gross margin. Lucid doesn't, though the trend is going in the right direction. Back in Nov 2021, we predicted that Lucid would have trouble scaling and stated the blatantly obvious - that LCID stock was hyped up to ridiculous valuations. Today, we see a share price that's floated back down to earth and a trail of broken promises. Lucid Motors isn't scaling fast enough, and they're burning way too much cash producing a product that isn't being sold fast enough. Investors in LCID stock do have one hope. It wears a kaffiyeh and has more money that you can shake a stick at. Will Saudi Arabia be the deep pocket that Lucid Motors needs to eventually reach profitability?
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