Lucid (US:LCID) ZACKS·2026-02-25 14:41Core Insights - Lucid Group reported a fourth-quarter 2025 loss per share of $3.62, which is wider than the Zacks Consensus Estimate of $2.49 and the loss of $2.20 in the same quarter of 2024, primarily due to increased costs totaling $1.58 billion, up from $967 million year-over-year [1][10] - Despite the loss, fourth-quarter 2025 revenues reached $522.7 million, exceeding the Zacks Consensus Estimate by 13.27% and more than doubling from the fourth quarter of 2024, with full-year revenues increasing by 67% to $1.35 billion [2] Financial Performance - The company's production doubled in 2025, with deliveries growing 55% to 15,841 units, while its closest competitor, Rivian Automotive, saw a decline in deliveries by 18% [2] - Lucid has guided production for 2026 at 25,000-27,000 units, representing a year-over-year increase of 40-50%, with the Gravity SUV expected to be a significant contributor [4] - Gross margin improved by approximately 18 basis points sequentially in Q4 2025, but remains below long-term targets, with management expecting continued improvement in 2026 [5] Cost Management and Industry Challenges - To enhance margins, Lucid announced a plan to cut 12% of its U.S. workforce, aiming for $500 million in cost savings over three years [6] - The company faces broader industry challenges, including the withdrawal of U.S. federal EV tax credits, pricing uncertainty, tariffs, and supply chain disruptions [7][8] Cash Flow and Investment - Lucid ended 2025 with approximately $4.6 billion in liquidity, which is expected to last into the first half of 2027, but free cash flow was negative $3.8 billion, worsening from negative $2.9 billion the previous year [9][11] - Capital expenditures for 2026 are projected at $1.2-$1.4 billion, up from $868 million in 2025, indicating continued heavy investment in R&D and other initiatives [11] Strategic Initiatives - Lucid is pursuing opportunities in the autonomous ride-hailing market through partnerships with Uber and Nuro, planning to deploy at least 20,000 vehicles over time [12][13] - Initial on-road testing for the autonomous vehicles began in Q4 2025, with commercial rollout expected later this year, targeting Level 3 autonomy by 2028 and Level 4 by 2029 [13] Market Position and Valuation - Over the past six months, Lucid's shares have underperformed compared to the industry, while Rivian's shares have gained 15% [14] - Lucid carries a Value Score of F, trading at a forward sales multiple of 1.26, significantly below the industry's 3.34, reflecting operational and financial challenges [15] - The Zacks Consensus Estimate for Lucid's 2026 loss per share has widened to $9.04 [17]