Why I Just Bought Lucid Stock -- and Why You Might Want to Buy Before May 5

Electric-vehicle shaper Lucid Group (NASDAQ: LCID) volition study its first-quarter results aft the U.S. markets adjacent connected May 5.

We already cognize those results won't beryllium great. (I'll get to that successful a moment.) In fact, the banal is down astir 36% since the electric-vehicle shaper pre-announced immoderate of its net connected April 14.

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But I deliberation Wall Street is missing thing apt to beryllium highlighted during Lucid's net study -- thing that could origin the banal to rebound.

That's wherefore I bought the banal a fewer days ago, and wherefore you mightiness privation to bargain it too.

Why Lucid pre-announced immoderate of its first-quarter numbers

This volition instrumentality a spot of explaining, truthful delight carnivore with me.

Lucid announced a large currency rise connected April 14 -- $750 cardinal from 2 existing investors, on with a $300 cardinal secondary banal offering -- for a full of $1.05 billion. (It besides announced a caller CEO, but that's different story.)

There was thing atrocious astir the rise itself. Much of it had already been announced. If anything, it was arguably bullish.

But heavy successful 1 of the regulatory filings that accompanied the news, Lucid disclosed immoderate preliminary first-quarter numbers. They weren't good.

Lucid's gross of betwixt $280 cardinal and $284 cardinal was far beneath Wall Street's $433.8 cardinal expectation. Its expected operating nonaccomplishment of betwixt $985 cardinal and conscionable implicit $1 cardinal is overmuch wider than the $692 cardinal Lucid mislaid connected that ground successful the archetypal 4th of 2025.

That quality drove the banal sharply lower, and it hasn't yet recovered.

Certainly, Lucid volition request to explicate the gross miss connected May 5. But I person a feeling that the mentation is already successful plain show -- adjacent if Wall Street's algorithms don't look to person seen it yet.

The mentation for Lucid's gross miss mightiness beryllium successful plain show

Lucid announced its first-quarter accumulation and deliveries totals connected April 3. The institution produced 5,500 EVs successful the archetypal quarter, portion delivering 3,093.

The spread betwixt those 2 numbers raises a question, doesn't it? Why did Lucid physique implicit 2,000 much EVs than it delivered?

It's a question that Lucid answered successful the adjacent paragraph of that property release.

"During the quarter, deliveries of the Lucid Gravity were disrupted for 29 days owed to a supplier prime contented with the second-row seats. As a result, the company's quality to conscionable lawsuit request was affected. These issues person present been addressed, and the institution is reaffirming its antecedently shared accumulation guidance of 25,000-27,000 vehicles."