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Lucid Group (LCID) reported mixed results for Q1 2025, with revenue of $235.05 million, up 36% year-over-year but below the $250 million analyst estimate. The company posted a loss of $0.20 per share, better than the expected $0.23 loss, and improved gross margins to -97.2% from -134.3% last year, though they remain deeply negative. Vehicle production rose 28% year-over-year to 2,212 units, while deliveries increased 58% to 3,109 units, marking the fifth consecutive quarter of growth. Lucid reaffirmed its 2025 production target of 20,000 vehicles and is advancing its product lineup with the Lucid Gravity SUV and a mid-size platform planned for 2026. Despite operational progress, financial challenges persist, with a net margin of -271.63%, ROE of -19.43%, and ROA of -7.02%, all below industry benchmarks. The debt-to-equity ratio of 0.64 reflects cautious debt management. Analysts remain mixed, with a reduced average price target of $3.00, citing profitability and efficiency concerns. Strategic moves include acquiring Nikola Corp assets for $30 million, adding manufacturing capacity, and raising over $1 billion through convertible senior notes, ending Q1 with $5.76 billion in liquidity. While Lucid shows growth potential, scaling operations and achieving profitability remain critical hurdles.
Source content provided by Benzinga.
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About LCID

Lucid Group Inc is a technology and automotive company. It develops the next generation of electric vehicle (EV) technologies. It offers its own geographically distributed retail and service locations and through direct-to-consumer online and retail ... Read more

Ways to trade options* on LCID

Bearish Option Strategy: Put Spread

Traders buy a put option near the money and sell another at a lower strike. This strategy can leverage a price drop with limited capital at risk.

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