Penny Stock Lucid Had a Bad Week

By Douglas A. McIntyre Updated Sep 2, 6:57AM EDT · Published Sep 1, 9:45AM EDT

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Penny Stock Lucid Had a Bad Week — © Lucid Air Pure GIMS 2024 1X7A2255 (BY-SA 4.0) by Alexander-93

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Shares of Lucid Group Inc. (NASDAQ: LCID | LCID Price Prediction) 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.

Here Are the Odds Lucid Goes Bankrupt in the Next 5 Years

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.