EV upstart Lucid Motors (NASDAQ:LCID) delivered a strong earnings beat with its first-quarter results. Investors were lackadaisical, though, as LCID stock shed close to 12% of its value on its post-earnings sell-off.

Analysts were expecting the EV firm to lose 31 cents per share on sales of $55.6 million. However, actual results came in significantly better, with $57.7 million in revenues and a loss of five cents per share.

For the full year, analysts expect the company to post a narrower net loss per share at $1.22 from a loss of $6.41 per share in 2021. Moreover, forecasts suggest that revenues could blow past $1.295 billion this year, from just $27 million in 2021.

During the first quarter, Lucid had 360 deliveries impacted by supply-chain troubles facing the majority of the automotive sector.

It now has 30,000 reservations for its flagship Lucid Air sedan, up 5,000 from February. If it can honor its commitments, the company may be looking at a whopping $2.9 billion in sales.

Moreover, Lucid re-iterated its amended production target of 12,000-14,000 deliveries in 2022. Its massive cash balance of $5.4 billion will be enough to fund the company through 2023.

Commenting on Lucid’s earnings, Morgan Stanley analyst Adam Jonas feels the stock is tough to recommend. He thinks that the enterprise has some core ingredients that will help it stand out and play a key role in the future of U.S. renewable energy.

However, it’s perhaps better to wait for a more attractive entry point in Jones’s view. LCID stock trades at a forward price to sales ratio of over 24 times.

Hence, Jones has a point here, but considering the stock’s performance of late, it might not be long before it’s trading at an appealing price level.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines