Tag: tesla

Global EV Demand Soars: Why Tesla (TSLA) Could Be a Must-Buy in 2025

Posted on by The INO.com Team

The electric vehicle (EV) industry is witnessing unprecedented growth, driven by global policy shifts, increasing consumer demand, and advances in technology. According to the International Energy Agency (IEA), global EV sales surged past 17 million units in 2024, a 25% increase from the previous year. With governments worldwide implementing aggressive policies to phase out internal combustion engines (ICEs), the transition to EVs is accelerating.

Tesla, Inc. (TSLA), the undisputed leader in the EV space, continues to ride this wave, reporting record production and deliveries in 2024. The company’s strong financial performance, expanding manufacturing capacity, and technological advancements make it a compelling investment for 2025. Moreover, Tesla’s ability to scale production while maintaining healthy profit margins has positioned it as a dominant force in the global EV industry, attracting both institutional and retail investors.

Key Developments Driving EV Demand

Several key markets have introduced favorable policies to support EV adoption. In the United States, the Inflation Reduction Act continues to provide substantial tax credits for EV buyers, with Tesla benefiting from the $7,500 federal EV incentive. In the European Union, the commitment to banning new ICE vehicle sales by 2035 has propelled EV demand, with Tesla’s Model Y leading sales in several European countries. Meanwhile, China’s aggressive subsidies and support for domestic production have solidified EVs as mainstream vehicles, helping Tesla gain significant traction in this crucial market.

Tesla has consistently maintained a dominant market share in key regions. In Q3 2024, Tesla delivered 462,890 vehicles, marking a 6% year-over-year increase. The Model Y became the best-selling vehicle in Europe in September 2024, underscoring the increasing consumer preference for EVs over traditional gasoline-powered cars. In China, Tesla’s Shanghai Gigafactory achieved a milestone by producing its 3-millionth vehicle, demonstrating its ability to scale manufacturing efficiently. This strong momentum reflects the broader consumer shift toward sustainable transportation solutions.

Tesla’s Competitive Edge

Tesla’s innovation in battery efficiency, AI-powered autonomy, and charging infrastructure continues to outpace competitors. The company’s cost of goods sold (COGS) per vehicle dropped to a record-low $35,100, improving profit margins. Full Self-Driving (FSD) technology is rapidly advancing, with over 2 billion miles driven using FSD (Supervised). The latest V12 software makes significant strides toward autonomous capability, which could revolutionize urban mobility. Additionally, Tesla’s Supercharger network expanded by 22% year-over-year, reinforcing its dominance in EV infrastructure and alleviating consumer concerns about charging accessibility.

Tesla’s production capacity has expanded significantly, enabling it to meet growing demand. The Texas Gigafactory ramped up Cybertruck production, with deliveries beginning in late 2024. The Berlin Gigafactory’s Model Y became the best-selling EV in multiple European countries, further strengthening Tesla’s foothold in the European market. Meanwhile, Tesla’s Shanghai factory produced and exported over 1 million vehicles in 2024, underscoring its importance to global operations. These developments highlight Tesla’s ability to execute large-scale production while maintaining operational efficiency.

Investment Analysis

Tesla stock’s nearly 70% returns over the past six months reflect its financial strength. The company’s Q3 2024 revenue reached $25.2 billion, an 8% year-over-year increase. Net income (GAAP) surged 17% year-over-year to $2.2 billion, signaling strong profitability. The company holds $33.6 billion in cash reserves, providing ample liquidity for future growth. These financial indicators suggest Tesla’s ability to weather economic downturns while continuing to invest in innovation and expansion.

Several analysts have recently upgraded Tesla’s stock, citing strong vehicle deliveries and robust demand in international markets. Advancements in AI and autonomous technology are expected to be potential future revenue drivers. Tesla’s diversification into energy storage has also been a significant growth factor, with revenue from energy storage increasing by 52% in Q3 2024. However, investors should be aware of potential risks, including supply chain constraints, increased competition from rivals such as BYD and Rivian (RIVN), and regulatory uncertainties that may impact future demand.

What Investors Should Do

Tesla’s trajectory aligns with long-term growth trends in the EV industry. With record deliveries, a strong balance sheet, and continued innovation in AI and battery technology, Tesla remains a compelling investment for 2025. Investors looking for exposure to the rapidly expanding EV market should consider Tesla as a strong ‘Buy’ candidate. However, those concerned about valuation and volatility may opt to watch for potential pullbacks before entering a position. Given Tesla’s continued leadership in the EV industry and its aggressive expansion into new markets, it remains a stock to closely monitor for long-term gains.

Autonomous Vehicles on the Horizon: Why Luminar Technologies (LAZR) Could Light the Way

Posted on by The INO.com Team

Autonomous vehicles (AVs) are no longer a futuristic concept; they are steadily becoming a reality. Automakers and tech firms are aggressively developing self-driving systems, with lidar—a laser-based sensor technology—playing a central role in ensuring safe and reliable automation. Luminar Technologies, Inc. (LAZR), a leader in high-performance lidar solutions, has positioned itself as a key enabler in this transition.

In Q3 2024, Luminar expanded its business by securing additional partnerships with global automakers, including Volvo and a major Japanese manufacturer. With the increasing adoption of its sensors and software, the company is gaining traction in an industry that is projected to grow at a CAGR of 41.6% from $1.19 billion in 2024 to reach $9.59 billion by 2030. Governments worldwide are also beginning to mandate stricter safety features in vehicles, creating an even more favorable environment for lidar adoption. As competition heats up in the AV sector, Luminar’s technology may serve as a key differentiator for automakers striving to meet new regulatory standards and consumer expectations.

The Role of Lidar in Autonomous Mobility

Lidar is critical for AVs because it provides high-resolution, three-dimensional mapping of the surrounding environment, enabling better object detection and navigation. Unlike camera and radar-based systems, which can struggle with depth perception and adverse weather conditions, lidar enhances safety by offering precise distance measurements and obstacle detection.

Automakers are increasingly integrating lidar into their advanced driver-assistance systems (ADAS). Notably, Volvo has made Luminar’s lidar a standard feature in the EX90, reinforcing the industry's shift toward enhanced safety protocols. As regulatory frameworks tighten globally, particularly in Europe and the U.S., the demand for lidar technology is set to rise. Additionally, the insurance industry is beginning to recognize the safety benefits of lidar-equipped vehicles, which could lead to lower premiums for consumers and further incentivize automakers to adopt the technology.

Luminar Technologies: A Rising Leader in Lidar

Luminar’s growing influence is evident through its expanding relationships with major automakers. The company secured a new agreement with a leading Japanese automaker, extending collaboration on next-generation ADAS. This follows its well-publicized deal with Volvo, where Luminar’s lidar is a cornerstone technology in Volvo’s pursuit of zero-fatality vehicles.

Beyond Volvo, Luminar has previously inked agreements with Mercedes-Benz, Nissan, and Polestar, underscoring its broad industry appeal. These partnerships suggest increasing adoption of its lidar sensors as automakers shift toward Level 3 and beyond autonomous capabilities. Furthermore, the company’s commitment to innovation is reflected in its next-generation Luminar Halo system, which promises improved performance at a lower cost, making mass adoption more feasible.

While Luminar reported Q3 2024 revenue of $15.5 million, slightly down from Q2, it saw a significant improvement in cash flow due to cost-saving measures. The company implemented restructuring actions that are projected to save approximately $80 million annually, helping to improve operational efficiency. In terms of production scale, Luminar ramped up shipments of its lidar sensors in Q3, surpassing the total output of the previous three-quarters combined. With its newly launched TPK facility, the company aims to optimize manufacturing costs further while maintaining its technological edge. As the industry moves toward larger-scale adoption, the ability to scale production efficiently will be crucial for maintaining a competitive edge.

Investment Risks: Competition and Market Uncertainty

Despite Luminar’s advancements, the lidar market is highly competitive. Companies like Velodyne, Innoviz (INVZ), and Ouster are vying for market share, while Tesla, Inc. (TSLA) remains committed to a camera-based AV approach. Additionally, some industry players are exploring radar-lidar hybrid solutions, which could shift market dynamics. The pace of regulatory changes and varying levels of government support for AV technology also add an element of uncertainty that investors should consider.

Financially, while Luminar is reducing costs, it remains unprofitable, reporting a net loss of $0.24 per share in Q3 2024. The company’s ability to achieve sustained profitability will depend on continued revenue growth and successful cost optimization. Furthermore, the overall AV industry has yet to reach mass adoption, and delays in regulatory approvals or consumer acceptance of self-driving technology could slow down Luminar’s growth trajectory. Investors should also be mindful of the company’s reliance on automaker partnerships, as shifts in industry strategy or economic downturns could impact future contracts.

Should Investors Consider Luminar?

For investors seeking exposure to the autonomous driving sector, Luminar presents a compelling opportunity. Its strategic partnerships, technological leadership, and improving financial efficiency suggest strong long-term potential. However, risks remain, particularly in a highly competitive and evolving market. The company’s ability to maintain its first-mover advantage while managing financial sustainability will be key factors in determining its long-term success.

LAZR stock has shown volatility, making it a higher-risk, higher-reward investment. Investors bullish on lidar adoption and the autonomous vehicle revolution may see Luminar as a strong bet, while those with a lower risk tolerance may prefer to monitor the company’s path to profitability before committing capital. Additionally, long-term investors who believe in the growth of AV technology may consider accumulating shares during market dips, as lidar adoption trends appear to be gaining momentum. As the industry evolves, Luminar’s ability to execute on its expansion strategy and maintain strong relationships with automakers will be crucial in determining its future trajectory.

China’s New Stimulus Package: Is Nio (NIO) Ready to Accelerate?

Posted on by The INO.com Team

China’s $1.4 trillion economic stimulus package, announced in late 2024, underscores the government’s resolve to reinvigorate its economy amid sluggish growth and mounting debt. Central to this effort is a strategic focus on clean energy and high-tech industries, with the electric vehicle (EV) sector emerging as a linchpin in the broader recovery plan. By channeling resources into EV infrastructure and green innovation, Beijing is not only addressing short-term economic challenges but also accelerating its transition toward carbon neutrality by 2060.

Nio Inc. (NIO), a key player in China’s EV market, appears well-positioned to benefit from these measures. Known for its premium vehicles and innovative Battery-as-a-Service (BaaS) model, Nio could capitalize on heightened consumer interest and improved operational conditions spurred by the stimulus. However, the company’s journey to capitalize on this opportunity is not without hurdles, as competition and financial challenges remain key areas of concern.

Why EV Stocks Could Benefit

China’s stimulus package reflects a dual commitment to economic stability and sustainable development. Apart from addressing local government debt through a $1.4 trillion restructuring plan, the initiative earmarks substantial funds for green infrastructure, including renewable energy projects and EV-related investments. With EV sales already comprising one-third of all passenger vehicle sales in China, the government’s support aims to amplify this trend further.

The implications for EV manufacturers like Nio are significant. Consumer subsidies for electric cars are expected to extend beyond entry-level models, benefiting mid-tier and premium vehicles as well. This could directly boost sales of Nio’s flagship models, such as the ET7 and the ET5 Touring, which cater to high-income and tech-savvy consumers. Moreover, government-backed expansions of charging and battery-swapping stations align closely with Nio’s BaaS offering. These enhancements can improve operational efficiency, reduce range anxiety for users, and bolster adoption rates.

Additionally, the package includes measures to stabilize supply chains for critical EV components like batteries and semiconductors. This could alleviate cost pressures and mitigate risks associated with supply disruptions, providing companies like Nio with a more predictable production environment.

Nio’s Position in the Chinese EV Market

Nio has steadily risen as a prominent force in China’s competitive EV landscape. In Q3 2024, the company delivered 61,855 vehicles, a year-over-year increase of 11.6%, demonstrating resilience in a challenging economic climate. Nio's dominance in the premium segment, commanding over 40% of the market for EVs priced above RMB 300,000, reflects its strong brand equity and consumer appeal. The introduction of the family-oriented ONVO L60 SUV further diversifies its portfolio, enabling it to cater to a broader customer base.

From a financial perspective, Nio recorded revenues of RMB 18.67 billion ($2.66 billion) in Q3 2024, reflecting a 7% sequential increase. While operating losses remain significant at RMB 5.24 billion, gross margins have improved to 10.7%, driven by optimized production costs and higher-margin after-sales services. The company’s strategic investments, including RMB 10 billion allocated to Nio China for expanding production capacity, highlight its focus on long-term growth.

Looking ahead, Nio’s product roadmap includes the launch of the ET9 flagship sedan and Firefly, a boutique brand targeting compact car buyers. These developments could strengthen Nio’s foothold in both premium and entry-level segments, broadening its addressable market and enhancing revenue streams.

Challenges to Watch

China’s EV market is among the most competitive globally, with major players like BYD Company Limited (BYDDY), XPeng Inc. (XPEV), and Tesla, Inc. (TSLA) vying for dominance. BYD’s cost-efficient manufacturing and Tesla’s aggressive pricing strategies have intensified the pressure on Nio to differentiate its offerings. Maintaining its leadership in the premium segment will require continuous innovation and superior customer engagement.

Meanwhile, the supply chain remains a critical vulnerability. Global shortages of raw materials like lithium and nickel, compounded by geopolitical tensions, could disrupt production timelines and inflate costs. While the government’s package aims to stabilize these supply chains, Nio’s reliance on external suppliers for batteries and semiconductors still exposes it to significant risks.

Profitability is another pressing concern. Despite achieving an improved gross margin of 10.7%, Nio’s operational losses remain high, driven by substantial investments in research and development (RMB 3.32 billion in Q3 2024) and marketing. Balancing growth aspirations with financial discipline will be pivotal to its long-term viability.

Additionally, macroeconomic factors could create headwinds. China’s broader economic challenges, such as a sluggish real estate sector and softening export demand, might dampen consumer spending, impacting EV sales even with government incentives in place.

Investment Outlook

For investors, Nio presents a compelling growth story within China’s burgeoning EV market. The company’s innovative business model, premium positioning, and alignment with government priorities place it in an advantageous position to benefit from the stimulus package. Its focus on battery-swapping technology and high-end smart vehicles caters to evolving consumer preferences, offering a unique value proposition.

However, Nio remains a high-risk investment. Challenges such as intensifying competition, profitability concerns, and supply chain vulnerabilities require careful monitoring. For those willing to weather volatility, Nio offers exposure to one of the fastest-growing segments in the global auto industry. Conversely, risk-averse investors may prefer to wait for clearer signs of operational and financial stability before committing. The stimulus package provides a promising tailwind, but execution and market dynamics will ultimately determine the company’s trajectory.

EV Demand Booms: Can Tesla (TSLA) Stay Ahead in the Electric Vehicle Race?

Posted on by The INO.com Team

The global electric vehicle (EV) market is experiencing an unprecedented boom fueled by strong consumer demand, government incentives, and climate-conscious policies. Sales of EVs have skyrocketed, supported by stricter emissions standards and tax breaks for both manufacturers and buyers. According to the International Energy Agency (IEA), EVs accounted for nearly 18% of all new car sales in 2023, a significant leap from just 4% in 2020. This shift is poised to accelerate as more countries introduce measures to phase out internal combustion engines (ICE). In this environment, Tesla, Inc. (TSLA) has emerged as a dominant player, yet the question remains: Can it maintain its lead in an increasingly crowded field?

Tesla's position as a pioneer in EVs is well-documented, and its growth has been remarkable. However, with legacy automakers ramping up their EV production and new players like Rivian Automotive (RIVN) and Lucid Group (LCID) entering the market, the competition is heating up. Amid these dynamics, Tesla's future hinges on innovation, production capacity, and its ability to outmaneuver both established and emerging rivals.

Tesla’s Leadership: Innovation and Market Dominance

Tesla continues to lead the global EV market with its broad product lineup, including the Model 3, Model Y, and the upcoming Cybertruck. In Q2 2024, Tesla produced over 410,000 vehicles despite a challenging economic environment. Its manufacturing scale and extensive gigafactory network—spread across the U.S., China, and Germany—offer the company a significant competitive edge. For instance, Tesla’s Shanghai Gigafactory has a production capacity of nearly one million vehicles annually, bolstering its ability to meet growing global demand.

Tesla's innovation pipeline remains a key factor in maintaining its market position. The highly anticipated Cybertruck, slated for broader release in 2025, already became the best-selling EV pickup in the U.S. during its limited initial run in Q2 2024. Beyond vehicles, Tesla’s focus on energy storage solutions is another cornerstone of its long-term growth. The company deployed a record 9.4 GWh of energy storage in the second quarter, driven by its Megapack and Powerwall products, further integrating its renewable energy ecosystem.

Financials and Growth: A Strong Foundation Amid Challenges

Tesla’s financial performance reflects that it is a company that continues to grow despite external challenges. In Q2 2024, Tesla posted record revenues of $25.5 billion, a modest 2% year-over-year increase. The company's energy generation and storage business doubled its revenue, while automotive revenue saw growth despite pricing pressures on its mainstream models.

Production volume is critical for Tesla’s long-term success, and the numbers are impressive. In Q3 2024, Tesla produced 469,796 vehicles and delivered 462,890, showcasing its robust supply chain and manufacturing prowess. However, the company is not without hurdles. Higher interest rates have strained consumer purchasing power, leading to a decline in the average selling price (ASP) for Tesla’s vehicles. Despite this, Tesla's strategic pricing adjustments and financing options have helped maintain demand.

The company’s cash flow is another bright spot. Tesla generated $1.3 billion in free cash flow in Q2, and its cash reserves have surged to over $30 billion. This strong liquidity ensures that Tesla can continue to invest heavily in future growth, including the expansion of its manufacturing footprint and ongoing development of autonomous driving technologies.

The Competitive Landscape: Rivals Close In

While Tesla remains the frontrunner in the EV race, competition is intensifying. New entrants like Rivian and Lucid Group have gained attention with their premium EV offerings. Rivian, for example, delivered over 13,790 vehicles in Q2 2024, positioning itself as a serious contender in the electric truck segment. Lucid Motors, on the other hand, has targeted the luxury market, with its Lucid Air sedan receiving praise for its range and performance.

Meanwhile, traditional automakers are accelerating their EV initiatives. Ford Motor’s (F) Mustang Mach-E and the electric F-150 Lightning, along with General Motors’ (GM) growing EV lineup, present formidable challenges to Tesla. However, Tesla’s vertically integrated business model, encompassing in-house battery production and software development, gives it a unique advantage over competitors that rely on third-party suppliers.

Moreover, Tesla’s leadership in charging infrastructure is unmatched. The company operates over 6,400 Supercharger stations worldwide, significantly outpacing rivals. This extensive network not only enhances Tesla's appeal but also provides a potential revenue stream as the company opens its chargers to other EV brands.

Investment Thesis: Tesla's Resilience in the Face of Valuation Concerns

Despite the growing competition and some concerns over Tesla’s high valuation, the company remains an attractive investment for long-term growth. Tesla’s stock has experienced volatility, with a 96x forward non-GAAP price-to-earnings (nearly 450% higher than the sector average) that suggests high future growth expectations. However, the company’s dominance in the EV market, its strong cash position, and its continuous innovation provide solid justification for its premium valuation.

Tesla’s ability to consistently scale production while maintaining its leadership in both battery technology and software gives it a significant edge over competitors. Moreover, the company's energy business—often overlooked by investors—offers additional upside, especially as the global shift toward renewable energy accelerates.

While short-term headwinds such as fluctuating demand and macroeconomic factors may cause volatility, Tesla’s long-term growth trajectory remains compelling. For investors seeking exposure to the rapidly growing EV sector, Tesla is well-positioned to deliver continued returns, supported by its strong brand, technological leadership, and robust financials.

Tesla Falls Short on Q3 Deliveries: What It Means for EV Stocks

Posted on by The INO.com Team

Tesla, Inc. (TSLA) reported its third-quarter delivery numbers on October 2, falling short of what some analysts were expecting, causing the stock to drop over 6%. The EV maker delivered 462,890 vehicles between July and September, up 6.4% year-over-year. While this number marginally beat the average estimate of 462,000 vehicles, it didn’t quite meet higher expectations from Barclays and UBS, which had forecasted 470,000.

Tesla’s Q3 numbers were also ahead of the 435,059 vehicles delivered in the same period last year and slightly better than Q2’s total of 443,956 deliveries. Of the 462,890 deliveries, 439,975 were for Tesla’s popular Model 3 and Model Y vehicles, while the remaining 22,915 included the Model S, Model X, and Cybertruck.

Even though Tesla’s Q3 deliveries improved year over year and were better than the second quarter’s 443,956, the results still left some investors concerned. Tesla's share price dropped by around 4% shortly after the market opened on the day of the release of the delivery data.  

Moreover, it raises concerns about Tesla’s ability to maintain its rapid growth, especially as competition intensifies in the EV space. For Tesla to avoid its first-ever annual decline in deliveries, it will need to achieve a record-breaking 516,344 deliveries in the fourth quarter.

Speaking of competition, Tesla isn’t alone in the race for EV dominance. Rivals like Li Auto Inc. (LI), XPeng Inc. (XPEV), NIO Inc. (NIO), and BYD Company Limited (BYDDY) also reported record-breaking deliveries in September.

LI, for instance, hit a record of 53,709 deliveries, up 48.9% year-over-year, while XPEV’s EV figures surged by over 52% from August and 39.5% year-over-year. BYD, Tesla’s biggest competitor in the global EV market, delivered 443,426 battery-electric vehicles in the third quarter, putting them just behind Tesla in quarterly numbers. Meanwhile, NIO reported a 7.8% quarter-over-quarter rise with 61,855 EV deliveries.

What’s Next for Tesla?

Tesla has a busy October ahead. The company’s third-quarter earnings report is due on October 23, and investors are particularly eager to see how Tesla’s profit margins are holding up. Meanwhile, the carmaker’s upcoming Robotaxi event on October 10 has drawn significant attention as the company is expected to share updates on its full self-driving technology, AI, and autonomous driving advancements. Analysts from Wedbush and Deutsche Bank have flagged the event as a potential catalyst for Tesla stock, which has already surged 20% over the past month. Both firms maintain buy ratings, with price targets of $300 and $295, respectively.

Despite the shortfall in Q3 deliveries, TSLA continues to innovate and expand its footprint in the EV and autonomous driving markets. Its solid position in China, along with continuous improvements in AI, could provide the momentum needed to meet future targets. Thus, adding this stock to your portfolio could be profitable.

However, investors concerned about Tesla’s near-term outlook could keep an eye on potentially strong companies like  Rivian Automotive, Inc. (RIVN) and Lucid Group, Inc. (LCID) as alternatives. Let’s look at their fundamentals in detail:

Stocks to Hold:

Rivian Automotive, Inc. (RIVN)

Rivian has had a tough time in 2024, especially as an EV maker still working toward profitability in a challenging market. Even though its stock has recovered from April lows, it remains down nearly 55% year-to-date. However, there’s optimism as the company outperformed Wall Street’s top- and bottom-line expectations in the second quarter, reflecting its cost-cutting progress.

On August 6, RIVN reported a loss of $1.46 per share, which came in above analysts’ expectations, who had predicted a loss of $1.19 per share. Its revenue for the quarter came in at $1.16 billion (up 3.3% year-over-year), slightly surpassing analyst expectations of $1.15 billion. The company also earned $17 million in revenue from regulatory credits.

Although it posted a net loss of $1.46 billion for the quarter, RIVN’s cash position remains strong. The company ended the quarter with $7.87 billion in cash and investments, bolstered by a $1 billion unsecured convertible note from Volkswagen. Moreover, the company completed a retooling upgrade at its Normal, Illinois plant, producing 9,612 vehicles and delivering 13,790 units.

For 2024, Rivian has set a production target of 57,000 vehicles, incorporating necessary downtime for further upgrades and cost reductions. It aims for a 30% improvement in production line rate and a 20% reduction in material costs compared to its previous platform, reflecting its efforts to enhance efficiency and reduce expenses.

The company has also revamped its R1 pickup and SUV models with slight competitive price increases. These updates are expected to boost revenues and help Rivian achieve its goal of turning a profit on each vehicle by the end of the year. Overall, while Rivian continues to face challenges, its strategic initiatives and strong cash position provide a foundation for potential future growth.

Lucid Group, Inc. (LCID)

Luxury electric vehicle maker Lucid has recently gained attention after exceeding expectations in the second quarter and achieving a new delivery record. Over the past three months, LCID shares have gained more than 20%. The company delivered 2,394 vehicles in the quarter ended June 30, marking a solid 70.5% increase compared to the same period last year and a 22% rise from the first quarter. This performance beat analysts’ predictions of 1,889 vehicles, following a record-setting 1,967 deliveries in the first quarter.

Meanwhile, production is also on the rise, with the company building 2,110 EVs after its production dropped 27% year-over-year in the first quarter. Though production remains below its previous highs, the improvement signals a positive recovery for the company. Having produced 3,837 vehicles through the first half of 2024, Lucid aims to reach its target of 9,000 vehicles for the year, which would require 5,163 more units in the second half.

As Lucid’s production and deliveries rebound, the company reported a second-quarter revenue of $200.58 million, exceeding Wall Street’s forecast of $192.65 million. However, the company had an adjusted loss of $0.29 per share, slightly higher than the expected 26 cents. Nonetheless, the Ev maker ended the quarter with $4.28 billion in liquidity and even secured a $1.5 billion commitment from Ayar Third Investment Co, a partner of Saudi Arabia’s Public Investment Fund. This funding provides Lucid with a financial cushion through at least the fourth quarter of 2025.

Commenting on this, CEO Peter Rawlinson said he’s “very encouraged” by the momentum Lucid is gaining, especially with the anticipated launch of its first electric SUV, the Gravity, later this year. This new model is expected to help the company maintain its positive trajectory as it moves into the second half of 2024. With that in mind, investors could consider adding this stock to their watchlist.