Lucid Continues to Fall Apart

By Douglas A. McIntyre Published Jan 13, 8:30AM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Lucid Continues to Fall Apart — © Lucid Motors Inc.

Lucid Group Inc. (NASDAQ: LCID | LCID Price Prediction) continues to show why it is stuck in the backwater of the electric vehicle (EV) industry. It produced 3,493 vehicles in the fourth quarter but delivered only 1,932. The difference between the two figures speaks to management’s deep problems and the vast effort that will have to be made to get Lucid to the point where it is a viable manufacturer. (See if Lucid is one of the least reliable cars in America.)
[in-text-ad]
Lucid’s announcement was made without comments from management. They had a chance to explain the problem. An explanation would have at least given shareholders something to cling to.
[nativounit]
The company’s third-quarter results were a train wreck. It lost $688 million on revenue of $195 million. While Lucid recently raised $1.5 billion, it is still not clear it has enough money to become profitable.
[wallst_email_signup]
Lucid’s business model is based on the outrageous belief that a moderate market exists for a $180,000 EV. Not only is there no proof of this, but every major car company in the world has announced EV models. Added together, these models number in the dozens. Several manufacturers, including BMW and Mercedes, are aimed at the high end of the market. Each large car company has iron-clad balance sheets, huge production facilities and world-class product development and marketing operations with decades of experience.
[recirclink id=1193858]
Lucid is alone on an island. It cannot make it to dry land in terms of products or profits.

Lucid’s stock price is indicative of its problems. It is off 82% in the past year. Lucid has been abandoned as a viable car company, particularly as almost the entire auto industry moves into EVs.

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.