Stock Market

Should You Buy Lucid Motors (LCID) Stock Before May 6?

Source: Jonathan Weiss /

After a difficult month and an overall volatile year, Lucid (NASDAQ:LCID) has finally picked up some momentum. This is partially due to the fact that it is scheduled to report earnings for the first quarter of 2024 on May 6. Given how much this once-prominent electric vehicle (EV) startup has fallen so far this year, investors will be watching keenly to see whether the Q1 report boosts LCID stock.

Shares of LCID have risen lately and reports indicate that EV demand is likely to rebound in the coming months. Still, some experts remain skeptical about a turnaround for Lucid, with shares hovering below penny stock price levels and failing to rise over $3 per share.

As Lucid’s earnings date draws closer, positive momentum will likely keep LCID stock elevated. But does that mean investors should be snapping up shares before the fast-approaching earnings call? Let’s take a closer look.

LCID Stock Pre-Earnings: Buy or Hold?

It’s hard to reach a definitive consensus on whether LCID stock is a buy or not. The startup produces luxury EVs in an economy that is shifting toward hybrid vehicles, due in part to their lower cost. While fellow EV producers like Rivian (NASDAQ:RIVN) are adapting to the times, Lucid still produces sleek, trendy EVs at high prices. But this doesn’t necessarily mean that it’s time to write off Lucid. On the contrary, the scrappy stock could still mount a comeback, especially if its Q1 report shows growth.

InvestorPlace contributor Steve Booyens recently took an in-depth look at the company, describing LCID stock as “oversold and underappreciated.” Booyens sees growth potential with shares, despite the risks:

“While Lucid may be perceived as a risky investment due to its current loss, Lucid’s price-to-sales ratio of 8.32x is at a cyclical discount of nearly 98%, suggesting relative value is in store. Moreover, I anticipate that solid product execution and long-term cost-cutting initiatives will drive LCID stock into net undervalued territory.”

If that’s true, investors should definitely consider stocking up on LCID stock before the upcoming earnings report potentially takes it higher. Despite recently hitting a new low for the year, Lucid still looks like an undervalued growth play in a sector poised to rebound. If consumers start buying higher-priced EVs again, the firm will be in an excellent position to grow. That scenario is looking increasingly plausible, although Lucid’s earnings report will do much to elucidate its long-term growth prospects.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

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