24/7 Wall St. Insights
- Lucid Group Inc. (NASDAQ: LCID) has been a penny stock for almost two years.
- The stock has underperformed the broader market in that time.
- Also: Dividend legends to hold forever.
Lucid Group Inc. (NASDAQ: LCID) has been a penny stock (under $5) for almost two years, and it should never have traded above that. The stock of the deeply troubled electric vehicle (EV) company was down approximately 10% this year, while the S&P 500 was 18% higher. The share price is 77% lower in the past two years, while the S&P 500 is up 45%.
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.
Are These 3 EV Stocks Good to Invest in This Year?
Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
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.