Lucid to Cut 12% of Staff While Shares Hit All-Time Low
Lucid will cut 12% of its 6,800-strong workforce, trimming about 816 jobs, as part of a profitability push ahead of its Q4 report. Shares fell 2.77% to an all-time low following a 66.9% year-over-year decline and ahead of an EPS estimate of -$2.60 on $460.32 million revenue.
1. Workforce Reduction
Lucid announced plans to eliminate 12% of its workforce, affecting approximately 816 of its 6,800 full-time employees, in a bid to narrow losses and move closer to profitability. The restructuring aims to reduce operating expenses ahead of the company’s Q4 earnings release.
2. Share Price Decline
Shares of Lucid slid 2.77% in recent trading to reach an all-time low, marking a 66.9% drop over the past year. The stock is trading well below its key moving averages, reflecting persistent bearish sentiment and testing critical support levels.
3. Earnings Preview
The company is scheduled to report Q4 results on Tuesday, with an EPS estimate of -$2.60 compared to -$2.20 in the prior year and a revenue projection of $460.32 million, up from $234.47 million a year ago. Investors will be watching for signs that the recent cost cuts and operational adjustments are bearing fruit.
4. Analyst Outlook
The consensus rating on Lucid stock remains Hold, with an average price target of $25.70. Recent analyst actions include Morgan Stanley’s downgrade to Underweight with a $10 target, Stifel’s Hold rating at $17, and Cantor Fitzgerald’s Neutral stance at $21.