Lucid Shares Collapse Near All-Time Low
Shares of deeply troubled electric vehicle (EV) maker Lucid have dropped almost 10% to an all-time low.
24/7 Wall St. Insights
- Lucid Group Inc. (NASDAQ: LCID | LCID Price Prediction) stock dropped almost 10% to an all-time low.
- It is hard to find another stock that has struggled as much.
- Also: Dividend legends to hold forever.
Shares of deeply troubled electric vehicle (EV) maker Lucid Group Inc. (NASDAQ: LCID) dropped almost 10% to an all-time low of $2.90. That compares to a 52-week high of $6.80 and an all-time high of $56 set during November 2021. It is hard to find a stock of any kind that has collapsed that much.
The sale was surprising, given that Lucid just raised $1.5 billion from the Saudi Public Investment Fund (PIF). Lucid is also set to release a new model, the Lucid Gravity SUV.
Lucid did lose a lot of money last quarter. It totaled $643 million on revenue of $200 million. It sold an extremely modest 2,374 vehicles. It is hard to imagine how such a small company can grow unit sales to profitable levels.
Among the problems the electric vehicle (EV) maker faces is that its sedans are very expensive in a world where people generally look for EVs with prices closer to gasoline-powered cars. Most of the Lucid Air sedans cost about $75,000, while the average price of a new combustion-engine vehicle in the United States is about $45,000.
Lucid faces more than just public concerns about battery range, charging stations, prices, and tire wear. Every major car company has entered or will enter the U.S. EV market. Tesla has a 49% market share, which makes the market even more competitive. There is a reason Lucid’s shares are down to such a frighteningly low level.
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