Lucid Stock Price Drops Below $2

Cars and Drivers

Published: November 25, 2024 10:49 am

Deeply troubled EV company Lucid Group’s (NASDAQ: LCID) stock price dropped below $2. It decreased 80% in the last two years, while the S&P 500 is 48% higher. Its latest collapse began early in September.

Two recent events have hurt Lucid shareholders. The most recent is that the Trump Administration is expected to drop the $7,500 tax credit for purchasing new EVs. Some observers believe this will not hurt Lucid as much as other EV companies. According to Electrek, “Although its luxury Air sedan, starting at $69,900, doesn’t qualify for the $7,500 credit, Lucid is passing it on to some through leasing.”

Lucid’s problems are more fundamental than tax credits. Both its earnings and level of deliveries have made investors uneasy. While Lucid has raised over $2 billion from its largest shareholder, Saudi Arabia’s Ayar Third Investment Company, part of the Public Investment Fund, the car company continues to bleed money.

Lucid only delivered 2,781 vehicles in the third quarter. Its revenue was $200 million, up from $138 million in the same quarter a year ago. However, the company had a net loss of $992 million compared to $631 million in the same quarter of 2023.

Lucid’s stock has dropped relentlessly. There is no reason to think that will stop.

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