Lucid Group (LCID +8.82%) announced Q2 electric vehicle (EV) production and deliveries, and missed expectations by a wide margin. That wasn't the big news from the company this week, though.
Lucid also now appears to have a turnaround plan in place, and that has investors hoping the stock has bottomed. Shares jumped 21% over the past five trading days, even as Lucid stock ended the week on a down note, according to data provided by S&P Global Market Intelligence.
Image source: The Motley Fool.
Lucid needs a reset
In the second quarter, Lucid announced that it produced 4,774 EVs and delivered just under 4,000 vehicles. The number of deliveries fell short of Wall Street's expectations of 5,000 units, according to FactSet.
Investors, though, focused on the bigger picture as new CEO Silvio Napoli thinned out executive-level positions and brought in new talent. Napoli announced a new CFO, chief technology officer, chief customer officer, and chief transformation officer.
The latter will be "leading enterprisewide transformation initiatives to accelerate execution and increase accountability," according to the company. That's the path that investors cheered. Lucid is still a relatively low-volume automaker, and improving efficiency, accountability, and a new focus on costs is the right direction to take.
NASDAQ: LCID
Key Data Points
Even with a plan in place, though, Lucid still needs its new Gravity SUV to be a successful model. That's the next data point investors should keep an eye on.
