Yesterday Lucid announced production and deliveries for the third quarter of 2024. Lucid finished the third quarter with a total of 1,805 cars produced and more importantly with 2,781 cars delivered.

This marked the sixth consecutive quarter with continued growth in terms of deliveries and is up nearly 90% year over year and 16% quarter over quarter.

The biggest question is regarding production. Is there an issue with production and what volume they can produce or is a strategic move to offload built up inventory?

My thoughts are that they are likely not rate limited by production but doing this to offload previous years models. We see that in early 2022 they proved they can produce vehicles however this outpaced demand greatly. They had built up a stockpile of nearly 6,000 unsold cars. With aggressive leasing and incentives in previous year models they have decreased this to 4,000 cars at this time.

	Delivered	Produced	Sell through	Inventory
Q4 2021	125
Q1 2022	360
Q2 2022	679	1405	48.33%	726
Q3 2022	1398	2282	61.26%	884
Q4 2022	1932	3493	55.31%	1561
Q1 2023	1406	2314	60.76%	908
Q2 2023	1404	2173	64.61%	769
Q3 2023	1457	1550	94.00%	93
Q4 2023	1735	2391	72.56%	656
Q1 2024	1967	1728	113.83%	-239
Q2 2024	2394	2110	113.46%	-284
Q3 2024	2781	1805	154.07%	-976
Cumulative #’s	17638	21251	83.00%	4098

After their delivery and production numbers were released Baird analyst Ben Kallo reiterated a price target of 3.00 on Lucid stock with a neutral rating. At this time according to Tipranks there are a total of 10 analyst covering Lucid stock with a Conesus of 2.94 as the average price target at this time. Lets see if this strong of strong delivering quarters can help raise that price target!