Lucid Stock Price Drops Below $2

By Douglas A. McIntyre Published Nov 25, 10:49AM EST

Lucid Stock Price Drops Below $2 — © Courtesy of Lucid

Deeply troubled EV company Lucid Group’s (NASDAQ: LCID) stock price dropped below $2. It decreased 80% in the last two years, while the S&P 500 is 48% higher. Its latest collapse began early in September.

Two recent events have hurt Lucid shareholders. The most recent is that the Trump Administration is expected to drop the $7,500 tax credit for purchasing new EVs. Some observers believe this will not hurt Lucid as much as other EV companies. According to Electrek, “Although its luxury Air sedan, starting at $69,900, doesn’t qualify for the $7,500 credit, Lucid is passing it on to some through leasing.”

Lucid’s problems are more fundamental than tax credits. Both its earnings and level of deliveries have made investors uneasy. While Lucid has raised over $2 billion from its largest shareholder, Saudi Arabia’s Ayar Third Investment Company, part of the Public Investment Fund, the car company continues to bleed money.

Lucid only delivered 2,781 vehicles in the third quarter. Its revenue was $200 million, up from $138 million in the same quarter a year ago. However, the company had a net loss of $992 million compared to $631 million in the same quarter of 2023.

Lucid’s stock has dropped relentlessly. There is no reason to think that will stop.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.