Lucid Sold Almost No Cars

Lucid Group Inc. (NASDAQ: LCID) sold a tiny number of vehicles in the third quarter. The $7,500 tax credit on electric vehicles (EVs) probably made that number less tiny. However, the expiration of the credit will likely reduce the tiny number in the fourth quarter and beyond. The news drove the stock down 10%, adding yesterday’s trading to the morning’s.

The company announced that it delivered 4,078 vehicles and produced 3,891. About 1,000 were assembled in Saudi Arabia. The kingdom is Lucid’s largest shareholder, via various investment companies.

Barron’s listed three reasons the announcement was awful. Wall Street was looking for a better number. Another reason is that Lucid vehicles are too expensive to qualify for the tax credit, though people can still receive it when they lease. Either way, the credit is gone. The third reason is its reverse stock split.

Lucid is too small to survive and too expensive to acquire. Based on its finances, no one would pay close to the stock price anyway. Although it had declined by almost 90% over the past five years, Lucid still has a market capitalization of nearly $7 billion. Ford’s value is approximately $50 billion, but it is one of the largest car companies in the world.

Finally, as mentioned, Lucid cars are too expensive. The base price of its least expensive model is $70,000. Its higher-end cars cost more than $100,000. Who would buy a car from a company that loses billions of dollars and may not be around much longer?

Lucid Stock Price Prediction and Forecast 2025-2030