TLDR:
- A single insider purchase of $970.89 million was made at Lucid Group in October
- Lucid produced 9,029 vehicles in 2024 and delivered 10,241, with 2025 production guidance of 20,000 vehicles
- Lucid shares recently traded up 1.6%, reaching $2.26 despite being down 30.46% year-to-date
- Analyst opinions are mixed with a consensus “Hold” rating and average price target of $2.73
- Company reported 2024 revenue of $807.83 million, up from $595.27 million in 2023, with a net loss of $3.06 billion
Lucid Group, the California-based electric vehicle manufacturer, has recently drawn attention for a massive insider purchase amid broader market uncertainty driven by new tariffs and economic concerns.
The Newark, California-based company, which specializes in designing, engineering, and manufacturing electric vehicles, EV powertrains, and battery systems, saw a single insider investment of $970.89 million in October 2024.
This purchase, made at $2.59 per share, stands out as the largest among stocks with at least $30 million in insider spending recently.
The significant insider buy comes at a time when the company’s stock has faced challenges. Currently trading at around $2.10, LCID has lost approximately 30.46% of its value since the beginning of 2024.
On Monday, March 3, Lucid shares traded up 1.6%, reaching as high as $2.31 before settling at $2.26. Trading volume that day was 26,785,089 shares, showing a 69% decline from the average session volume.
For the full year of 2024, Lucid reported revenues of $807.83 million, representing an increase from the $595.27 million recorded in 2023. However, the company’s net loss widened to $3.06 billion in 2024, compared to a net loss of $2.83 billion in the previous year.
On the production front, Lucid manufactured 9,029 vehicles in 2024, meeting its annual production guidance of approximately 9,000 vehicles. The company delivered 10,241 vehicles during the year.
Looking ahead, Lucid has announced its 2025 annual production guidance of approximately 20,000 vehicles, suggesting confidence in growing demand and production capacity.
Analysts have mixed opinions on Lucid’s prospects
Wall Street analysts have mixed opinions on Lucid’s prospects. Royal Bank of Canada decreased its price target from $3.00 to $2.00 with a “sector perform” rating, while R. F. Lafferty upgraded Lucid from a “hold” to a “buy” with a $4.00 price target.
Bank of America took a more pessimistic view, downgrading Lucid from “neutral” to “underperform” and dropping its price target from $3.00 to $1.00 in late February.
Benchmark initiated coverage with a “buy” rating and a $5.00 price target in mid-February. Overall, the stock currently has a consensus rating of “Hold” and an average target price of $2.73.
Financial metrics show the company has a debt-to-equity ratio of 0.77, a current ratio of 3.71, and a quick ratio of 3.26. Lucid’s market capitalization stands at approximately $6.54 billion, with a price-to-earnings ratio of -1.62 and a beta of 0.93.
The company has attracted interest from institutional investors. Charles Schwab Investment Management Inc. holds 5,096,667 shares valued at approximately $17,991,000 after increasing its position by 84.6% in the third quarter of 2024.
The Manufacturers Life Insurance Company slightly increased its holdings by 2.5% to 263,401 shares valued at $930,000. Overall, hedge funds and institutional investors own about 75.17% of the company’s stock.
Lucid’s business model involves selling vehicles directly to consumers through its retail sales network and online sales, including Lucid Financial Services. The company also creates proprietary software in-house for its Lucid vehicles.
The insider purchase at Lucid comes amid broader market uncertainty. The Trump administration’s tariffs on goods from Canada, Mexico, and China took effect recently, causing market volatility.
Technology stocks have been particularly affected, with the tech index falling 1.2% to its lowest point in almost four months, erasing post-election gains. Many analysts have downgraded their U.S. stock projections for 2025, citing challenges to earnings growth.
Despite these headwinds, some experts remain optimistic about potential productivity boosts from AI adoption and expected lower interest rates, which could positively impact the market including companies like Lucid in the coming months.
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