Lucid Motors (LCID) Stock | Long Term Analysis | Overvalued or Undervalued |

Transcript (auto-generated)

All right hello and welcome everybody to others talking about spirit today we’re talking about lucid motors ticker symbol LCID now this company is traded on the nasdaq currently and this company went public in the year of 2021 so this year and what i want to do in this video is talk about what the company is currently overviewed or undervalued and then i won’t give you a long-term announcement on this company so we’re going to talk about how this company works how it tries to make money right now the company is not profitable but i will get into essentially how this company works in terms of building and maybe a potential growth investment as well i want to talk about how this company could potentially do very well and i want to see if it’s actually a viable investment for anybody because i have been struggling to find a lot of information on this company and so i think it’s important to make a video to spread awareness about this company and see maybe if it’s good stock or not to be looking into if you’re maybe a value investor growth investor dividend investors all investors are welcome so i definitely want to talk about exactly how each investor could benefit from this stock anyway if you like this video please do like subscribe if this is about our channel and let’s get this content out to more people so that more people can understand how lucid motors works and also all the stocks that we talk about work as well on our channel anyway thanks so much for watching without further ado let’s get started now this company is very interesting because this is a new company this company essentially is decided to go public in order to raise some cash so with them raising more cash their goal is to essentially gain more investors and more awareness for this company so if they gain more aware awareness for lucid they can hopefully get more people to be interested in maybe looking into buying their vehicles which are very expensive this is a luxury vehicle manufacturer however it works primarily in the electric vehicle space that is what they do they do have some other electric visions which we talk about in a moment but the real point is that they make electric vehicles so if you’re looking to invest in some sort of eb stock this would be considered an ev stock in electric vehicle stock and so i do think that this would be potentially an interesting investment however i want to talk about truly defiance of this company so you aren’t just looking into where the company could go in the future you won’t also understand whether or not you’re getting a good value at this point or if you should wait etc so let’s talk about that now now let’s talk about the debt and the cash at this company now i found it to be very difficult to get information on this company a lot of people have different um ideas of where the company’s cash is and also where the debt is and things like that the real point overall is that the company doesn’t have any real intrinsic value or any real book value this company actually is losing money consistently and they have assets that are worth less than their debt so the point is that this company has a negative worth so their book value is considered to be negative so the company currently according to stock has a negative book value so that it shows that it has negative 2.76 for its book value now this is not very good per share obviously you do not want to have a company with a negative book value as this would suggest that the company would go bankrupt if they are losing money in this case the company is losing money at this time so from a value investor’s perspective i would not be interested in this company for me i am a value investor that is my personal opinion but there’s potential growth for this company they may make a lot more money and then this book value could change all of a sudden into a very positive growth investment so keep that in mind as if you’re thinking about investing it could be a viable investment if you’re looking at from a growth investor’s perspective this company does have some cash as you can see they have about 500 million dollars in cash that is pretty good however they lose that about every year just in net losses so if we take a look at the income of the company we can see that over the most recent quarter of 2020 their net income is posted to be a negative 588 million dollar loss essentially so they’re losing money at this point so they’ve also lost money in the past so this cash can be wiped very quickly so i would definitely keep that in mind that this company is losing lots of money very quickly right now and so although they do have some pre-orders for their vehicles specifically their lucid air series they have a lot of pre-orders for their reservation so they have about 500 000 customer deposits at the end of 2020 is what the motley fool has listed here but this company still really is losing money so despite the fact that they have this amount of money this is very little this is half a million compared to their consistent loss of about 500 million every quarter keep that in mind that this company really doesn’t have a strong standing at this point especially with a lot of their competition right now tesla makes a great vehicle so although lucid motors is another american electric vehicle manufacturer that could be very successful there’s already another company that right now is profitable and that may potentially be a better investment or potentially offers vehicles that already work right now loosened boaters although they’ve sold out of their vehicles they’re they’re really just reservations at this point and that tesla actually makes its vehicles right now and you can drive them you can buy one etc now we take a look at the outstanding chairs in the market we can see the company has consistently issued more and more shares every quarter approximately and this is just because the company is trying to make more money they’re trying to get more cash because they need more cash in order to survive unfortunately this is still not good for the investors when a company issues more shares it dilutes the market and this technically causes problems for the company’s shareholders because when a company does this there’s more shareholders now in the market and there’s more shares outstanding in the market so the assets of the company and the worth of the company is distributed across more shares also this company does not offer any dividend because they have no money to pay you so they’re right now start struggling so if they don’t have any money to pay you they’re not going to pay you a dividend straight up so it is what it is but i just want to make you aware that this company does not offer a dividend it issues shares constantly so from a technical perspective i do say this company is not very good for the shareholder and is not trying to benfit the shareholder at this point we also have to understand that this is truly a growth stock this is not supposed to be a stock that you’re just maybe trying to get some value out of this is not value stock that’s not dividend stock this is none of that kind of stuff so you are taking an immense amount of risk if you choose to invest in the stock lucid motors is still just a very risky investment in my opinion i do not plan on investing in this company anytime soon i do see this company is just too risky for me and there’s just other companies out there and other eb stocks out there as well they have much better book values and seem to be doing much better financially than this company at this point if anything dramatically changes we’ll try and make some update videos in order to talk about how this company is doing but at this point and at least for the foreseeable future this company unfortunately isn’t doing very well financially and i don’t see them getting out of this financial situation anytime soon do the heavy competition and also the company’s poor financial situation so like i always say this is not financial advice or anything like that i am also not a financial advisor so please do your own research before investing anyway thank you so much for watching if you like this video please do like subscribe if this is about our channel and please comment down below and tell us we think about this company we’ll try to get back to you anyway thanks again for watching and have a great day everybody