Aug 3, 2021
[1 min Read]
I'll make this quick - essentially increase in online job postings indicates positive future performance and Lucid Motors is hiring a ton of people
The argument is that an increase in job posting is a positive indication of future performance and earnings. This is highlighted in a recent study completed in the journal of Management Science.
Lucid Motors is planning to hire a little over 850 new employees.
According to research published in the July issue of the journal Management Science, changes in the number of a company's online job postings are a leading indicator of changes in that company's future performance. The relationship is stronger when the job postings likely represent the addition of new employees rather than the replacement of people leaving the company, the researchers found.
“When companies increase the number of job postings on their websites, we anticipate an increase in sales and earnings in the future,” says study co-writer Alex Nekrasov, an assistant professor of accounting at the University of Illinois at Chicago. “When they cut them, it means some not-so-good times are likely ahead, probably sales and earnings will decline. It doesn't mean there won't be growth, but it will be less than expected.
Lucid Motors currently has ~2,300 employees, based on their company profile on LinkedIn. They are looking to hire ~850 people. This is a lot of people they are planning to bring on board. Keep in mind that this is a long-term play. It will take a bit of time to hire, let the employees get up to speed, and start performing for $LCID.
Overall this bodes well for Lucid Motors - they have a growth plan, need a ton of people to execute, and will start to see the results in the near future.