Lucid Stock Collapse Continues

By Douglas A. McIntyre Published Jul 4, 5:35AM EDT

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Lucid Stock Collapse Continues — © Lucid Air Pure GIMS 2024 1X7A2255 (BY-SA 4.0) by Alexander-93

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Lucid Group Inc. (NASDAQ: LCID | LCID Price Prediction) stock is still in trouble and will not recover. It is too small and loses too much money to survive.

Any good news Lucid Group Inc. (NASDAQ: LCID) has released this year has not saved investors from a stock that has dropped considerably in value. Despite a modest recovery, shares are off 30% this year, while the S&P 500 is 19% higher. Even shares of beaten-down Tesla Inc. (NASDAQ: TSLA) are flat over the same period.

Lucid will likely not be rescued the way small electric vehicle (EV) company Rivian Automotive Inc. (NASDAQ: RIVN) was by Volkswagen. The German giant will invest as much as $5 billion in Rivian, primarily to access its sophisticated EV intellectual property. Lucid would have had a similar deal by now, but most giant car manufacturers have their EV fleets and strategic plans they believe in.

Saudi Arabia’s Public Investment Fund invested about $1 billion in Lucid, which did not change the overall sentiment about the EV firm. In the first quarter, Lucid delivered only 1,967 vehicles. Will Lucid go under like Fisker did?

Earnings for the first quarter were terrible. Revenue was only $172 million, up from $149 million in the year-ago period. Lucid lost $684 million, compared to $775 million a year ago. Lucid’s unit sales would need to surge for it to break even. The company said it hopes to make only 9,000 vehicles this year.

Even if Lucid had not lost so much money, the EV industry is in trouble in the United States and Europe. Prices are considered too high, and people are worried about how far vehicles go on one charge and, based on much public opinion, there are not enough charging stations.

Don’t wait for Lucid shares to recover because they won’t.

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.