Tesla’s 22% Share Surge Does Nothing for EV Maker Lucid

By Douglas A. McIntyre Published Oct 25, 7:10AM EDT

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Tesla’s 22% Share Surge Does Nothing for EV Maker Lucid — © LumiNola / E+ via Getty Images

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A strong quarter lifted Tesla Inc. (NASDAQ: TSLA | TSLA Price Prediction) stock but not Lucid Group Inc. (NASDAQ: LCID) shares.
It is hard for investors to see that things will get better for Lucid.
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As Tesla Inc. (NASDAQ: TSLA) posted a breakout quarter that drove its stock 22% higher, smaller rival Lucid Group Inc. (NASDAQ: LCID) did not benefit from an indicator that the electric vehicle (EV) business may be growing healthy again. Its shares rose only 0.4%, which shows how little investors think of it on a day when Tesla’s shares gained the most on a percentage basis since 2013.

Tesla’s revenue for the third quarter rose 8% year over year to $25.2 billion. Per-share earnings rose 9% to $0.72. Also, Tesla vehicle deliveries rose 6% to 468,890.

The primary driver of the rise in its share price was CEO Elon Musk’s comments. He predicted a 20% growth in vehicle sales in 2025 and hinted at lower-cost vehicles and major advances in self-driving cars. He also forecasted that Tesla’s new Cybercab would eventually have sales of 2 million units a year.

Lucid shares did not rise on the Tesla news because, even if Musk signaled a sharp rise in sales, Lucid is too small to participate in a manner that would make it profitable.

Lucid produced only 1,805 vehicles in the third quarter and delivered 2,781. That is such a modest number that it is hard to see how Lucid will make money. Its stock has dropped 81% in the past two years, while the S&P 500 has been 56% higher. Its massive financial losses are the reason. In its most recently reported quarter, it had revenue of $200 million and a loss of $792 million. It is hard to make the case that it will get better.

Lucid is an example that good news in its industry is not enough to change the market’s mind about its future.

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.