Cars and Drivers

Penny Stock Lucid Had a Bad Week

Douglas A. McIntyre

Published: September 1, 2024 9:45 am

Last Updated: September 2, 2024 6:57 am

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• Shares of Lucid Group Inc. (NASDAQ: LCID) underperformed the broader markets last week.
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A penny stock refers to a small company’s stock that typically trades for less than $5 per share. —Investopedia.

Shares of Lucid Group Inc. (NASDAQ: LCID), the deeply troubled electric vehicle (EV) company, were down approximately 5% last week while the S&P 500 was flat. The stock was down 36% in the past year, while the S&P 500 was 18% higher.

Lucid has been unable to escape the fact that it is a tiny player in an industry whose growth has unexpectedly slowed. It delivered only 2,394 vehicles in the second quarter and expects to do no more than 9,000 this year. It has revenue of only $200 million and a loss of $643 million, which adds to a long string of quarters with red ink.

In an era when the race is to produce a $25,000 EV to lift the industry from its doldrums, Lucid’s cars cost $80,000. They have unspectacular ranges of less than 400 miles on a single charge. An investment of $1.5 billion from the Public Investment Fund of Saudi Arabia is not enough to sustain it.

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