LCID is not an attractive buy; fair value ($1.91) is well below current price ($4.22).

Lucid announced its quarterly production and delivery figures as management continues to try to adjust the size of the company's business. They are producing fewer vehicles and delivering and selling more than they produce in an effort to reduce their inventory, as consumers in the United States are buying fewer electric cars.

What does this mean for Lucid stock investors? Lucid informed investors that it produced 2,954 vehicles and delivered 3,806 vehicles. So, there are approximately 900 more deliveries or sales than were produced.

This reduces the company's inventory, and I believe this is a wise strategy because electric car sales are by no means growing at the pace that companies like Lucid, Rivian, Tesla, and others had hoped for.

The company has exceeded production while continuing to implement its plan to reduce inventory. As I mentioned, I believe this is a wise strategy. They also stated that demand for the Lucid Gravity continues to regain momentum.

Remember that consumers in the United States prefer SUVs to sedans, and the Lucid Gravity is an electric SUV that, in my opinion, is one of the best on the market.

Lucid cars look beautiful and are my favorite electric cars on the market, but they are extremely expensive, approaching six figures across their range of vehicles . As you can imagine, this does not reach many consumers.

Fewer consumers can afford the $100,000 price tag for a vehicle.

Therefore, third-quarter sales will be roughly at the same level as the second quarter, when the company delivered 3,953 vehicles and produced 4,774. The difference is about 100 to 150 units, but it is a consecutive decrease compared to the previous quarter , and again, another quarter in which production is less than sales.

The problem with Lucid is that the business is designed to produce on a larger scale to be sustainable. This means they need to sell more cars to at least reach the break-even point in net profit. They are far from that level.

The company has about $800 million in cash and short- term investments on its balance sheet while continuing to burn through hundreds of millions, if not billions, of dollars annually.

This company at one point had over $6 billion on its balance sheet and has consumed most of that capital. Most of that capital went into quarterly operations, where money leaves the company every 3 months.

The good news is that with increased vehicle sales and the launch of "Lucid Gravity ", the operating profit margin is improving. But it is not improving fast enough for a company that is losing so much in net profit.

Over the past twelve months, the operating profit margin has been negative 259%, and this does not take into account the capital expenditures necessary to maintain a car manufacturing company.

This figure has improved from negative 500%, but it is still so negative that you would like to see a faster improvement in performance, which is not happening, and you can blame Lucid for the initial expectations when the company was set up in a way that required a very broad scale to be sustainable.

But that was a decision made many years ago , and the electric car market has turned out to be smaller than companies like Lucid, Rivian, and Tesla had anticipated.

Thus, this applies to all electric car companies such as Tesla, Lucid, Rivian and others, who thought that sales would be much higher than they actually are. Therefore , it is not surprising that Lucid's rating has fallen to record lows.

It is trading at a price- to-forward sales ratio of 0.457, its lowest level in history.

I calculated the fair value of Lucid's stock at $1.91. The current market price is $4.22. Therefore, despite the stock price being down more than 90% from its all-time high , and approaching 95%, it does not appear to me to be an attractive buying opportunity . There is still a lot of work to be done .

I believe the management is making wise decisions. It is simply an industry that is not in a good position right now, and is unlikely to improve in the near term. If I were interested in Lucid stock, I would have waited for a better buying opportunity to enter.