24/7 Wall St. Insights
- The financial situation at Lucid Group Inc. (NASDAQ: LCID) is such that it will never escape the penny stock category.
- Also: Dividend legends to hold forever.
“A penny stock refers to a small company’s stock that typically trades for less than $5 per share.” –Investopedia.
Lucid Group Inc. (NASDAQ: LCID) is trading in penny stock territory, down 54% in the last year to $3.12. In September, it was above $5. Despite a string of what management considers good news, the shares have continued to tumble in the last year, regardless of very brief periods when they rallied slightly.
Part of the stock’s downdraft is the overall slowdown in electric vehicle (EV) sales, which has affected industry leader Tesla Inc. (NASDAQ: TSLA) and legacy manufacturers. These companies have rushed into the EV sector while spending billions of dollars. Ford Motor Co. (NYSE: F) has been the most aggressive among the companies making these investments. It only sells a few thousand EVs a month in the United States.
The most positive news in the last year was an investment from Ayar Third Investment Company, an affiliate of the Public Investment Fund, the Saudi Arabia sovereign fund. The $1 billion, which may be used for capital expenditures and working capital, is unlikely to be enough to support Lucid until it can become profitable, which it likely will never be.
Lucid’s unit numbers are incredibly small. In the first quarter of 2024, Lucid produced 1,728 vehicles and delivered 1,967. The financial figures for the same period were revenue of $173 million, up from $149 million in the first quarter of 2023. Lucid lost $681 million in this year’s first quarter compared to $780 million in the quarter a year ago,
Lucid’s financial situation is such that it will never escape the penny stock category.
Lucid Stock Price Prediction: Where Will It Be in 1 Year
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.