By Emily Bary
Lucid deliveries come as the electric vehicle sector finds itself in a difficult period
Lucid Group Inc. posted just one sentence Tuesday morning, but that's sending its stock higher.
The one-sentence statement contained Lucid's (LCID) delivery numbers for the March quarter. The company delivered 1,967 vehicles and produced 1,728.
Lucid shares rose 3% in trading on Tuesday.
FactSet doesn't compile consensus expectations for Lucid's production and delivery numbers, but CFRA analyst Garrett Nelson called the electric vehicle company's latest disclosures a "mixed bag." It expected 1,850 units in both production and delivery.
Nelson maintained his "strong sell" rating on the stock in the wake of the numbers.
"While [Lucid's] Quarterly shipments of 1,967 units represented a record...the company is still far short of achieving the scale needed to reduce its unit costs," he wrote. "The results imply that [Lucid's] โCash burn rates remain extremely high and their runway is clearly shortening.โ
Lucid said last month that its majority shareholder, Ayar Third Investment Co., planned to buy $1 billion of its shares.
Read: EV maker Lucid rebounds after $1 billion investment by majority shareholder as it burns cash
The electric vehicle sector has been struggling lately, as smaller players face demands for cash from capital-intensive companies, while industry titans like Tesla Inc. (TSLA) face a cooling in consumer demand, as well as greater competition.
Tesla disappointed Wall Street with its own delivery numbers in early April, with the company decrying "the initial phase of the updated Model 3 production ramp at our Fremont factory and the factory closures resulting from shipment diversions caused โโby the Red Sea conflict and an arson attack on the Berlin Gigafactory." But a Deutsche Bank analyst said demand problems in the United States helped fuel the company's delivery failure.
See more: Tesla shares plunge as delivery numbers miss the mark by a wide margin
-Emily Bary
This content was created by MarketWatch, operated by Dow Jones & Co. MarketWatch is published independently of Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones News
04-09-24 1126ET
Copyright (c) 2024 Dow Jones & Company, Inc.
