Lucid: 2 Strategic Pivots Give Hope, But I Remain Bearish

Dilantha De Silva12.99K FollowersFollow5ShareSavePlay(12min)Comment(1)SummaryLucid's 12% layoff may curb its ~$900 million quarterly cash burn, but it fails to address the core demand and scalability challenges keeping me bearish.Aggressive price cuts and an alarming ~$69k per-vehicle SG&A cost highlight a structural brand value deficit in the luxury EV market.Strategic pivots toward a midsize platform and third-party dealer networks offer long-term hope but introduce massive near-term execution risks.Ahead of Q4 earnings, investors should look past the projected 96% revenue surge and focus on inventory growth and a few other key metrics. Khosrork/iStock Editorial via Getty Images As an investor, I love investing in companies in which I am also a customer. Some core holdings in my portfolio, including Netflix, Inc. (NFLX), Meta Platforms, Inc. (META), Airbnb, Inc. (This article was written byDilantha De Silva12.99K FollowersFollowDilantha De Silva is an experienced equity analyst and investment researcher with over 10 years in the investment industry. He writes insightful articles for Seeking Alpha, GuruFocus, TipRanks, and ValueWalk, with a significant following on Seeking Alpha. Dilantha’s expertise spans across various sectors, with a particular focus on small-cap stocks that are overlooked by Wall Street analysts. He is a CFA Level III candidate and holds qualifications from the Chartered Institute for Securities and Investment (CISI). Dilantha has been featured on CNBC and Bloomberg, and his work has been prominently showcased on Nasdaq, Yahoo Finance, and other leading investment platforms. When not analyzing stocks and writing, Dilantha is involved in private equity transactions, including acquiring and managing businesses.Analyst’s Disclosure: I/we have a beneficial long position in the shares of NFLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I am long UBER, ABNB, and METASeeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.