Why Lucid stock is soaring today

Over the past year, theLucid Group (NASDAQ: LCID)There's not much to cheer about for shareholders of the luxury electric vehicle (EV) maker, which has seen its stock plummet 65% over the past 12 months. Shares of the luxury electric vehicle (EV) maker have tumbled 65% in the last 12 months, but they've rallied after the company announced its first-quarter production and delivery results today.

These numbers seem to have exceeded investor expectations. Lucid shares jumped more than 61 TP3T on the news, and as of 11:10 a.m. ET, the company's stock price had risen 31 TP3T during the day, and there's a good reason why investors liked the numbers the company released.

Deluxe Electric Vehicle Market Worrisome Action

Lucid's first-quarter production didn't exceed its own expectations. Management had previously projected that the company would build about 9,000 vehicles by 2024. The 1,728 EVs produced in the first quarter didn't give them a reason to raise their full-year production forecast.

Importantly, however, the company's quarterlyDelivered.Nearly 2,000 electric vehicles. This dispels concerns that Lucid has been producing unsold vehicles and building up inventory. In the fourth quarter, Lucid's production exceeded deliveries by about 650 units. So it's encouraging to see that difference reversed in the first quarter.

But sales are still well below the company's forecasts from more than a year ago. This has caused Lucid to burn through more cash than originally planned. Financial support from Saudi Arabia's Public Investment Fund (PIF) and its subsidiaries may be the only reason Lucid has not yet discussed filing for bankruptcy.

Ultimately, Lucid will need a boost in sales of its Air luxury sedan, as well as a boost in sales of its Gravity SUV when it starts shipping at the end of the year. For now, the news that the Air sedan sales aren't declining is enough to give investors a boost to its stock price.

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Howard Smith owns shares of Lucid Group.The Motley Fool does not own any of the above shares.The Motley Fool has a disclosure policy.

Why is Lucid stock soaring today?