LCID Falls on Guidance, Daniel Goldman Was Buying
Luxury EV manufacturer, Lucid Group Inc (LCID:US) announced a disappointing quarterly report which sent its stock price crashing by as much as 10%. It reported a loss per share of $0.43 and revenue of $149.4 million, which was way off the expected $197.8 million mark.
As things stand, the company is sitting on $4.1 billion in cash and $700 million in credit lines, an amount which will help it carry on production till Q2 2024. An 18% reduction in its workforce is one measure that will help them conserve cash. But in the long run, the company will need to do something about the weakening demand.
In February, the company’s yearly estimate was 10,000 to 14,000 vehicles. With the CEO dropping the top mark of that range on the earnings call, the market has clearly taken that to mean lower guidance.
“We are on track to produce over 10,000 vehicles in 2023, with company-wide initiatives ongoing that will enable Lucid to pivot to higher volumes as market conditions allow,” Peter Rawlinson, the CEO, said on Monday.
The stock went down over 10% during trading, though it recovered some of those losses as the day progressed. It is now down about 55% over the past year. And if anyone thought that was the bottom, they might want to look at Daniel Goldman’s trading history to get a clue.
The New York’s 10th congressional district representative bought the stock at a closing price of $11.69 when the stock was rallying in January and seemed to have bounced off the bottom. He bailed out in March, selling $15K - $50K worth of shares for a 24.5% loss. The stock is down a further 20% since, so the Democrat Representative still bailed out in time.
