Lucid Stock Plunges Again This Year

Investing

Published: February 12, 2025 9:15 am

In addition to falling over 70% since its initial public offering, Lucid Group Inc. (NASDAQ: LCID) stock is down 10% this year. At least in part, the reason is pessimism about electric vehicle (EV) sales in 2025. In 2024, only 8% of new cars sold in the United States were EVs. This year, the $7,500 tax credit on EV purchases will be discontinued. Federal support for more charging stations across the country has also disappeared. And a lack of charging stations is one objection potential EV buyers have.

24/7 Wall St. Key Points:

Pessimism about electric vehicle sales has Lucid Group Inc. (NASDAQ: LCID) stock down 10% this year.
If bigger car companies are challenged to make money selling EVs, how can Lucid succeed?
Take this quiz to see if you’re on track to retire. (sponsored)

Lucid has recently received support from one of America’s most prominent investors. BlackRock holds just over 12% of Lucid’s total share count. The reason may be a Saudi investment in the EV company. In August, Ayar Third Investment, an affiliate of the Public Investment Fund, agreed to purchase $750 million of convertible preferred stock via private placement, and it provided for a $750 million unsecured delayed draw term loan facility. The fund was already Lucid’s largest investor.

However, sales results and financials show that these investments are risky. Lucid only produced 2,081 vehicles in the third quarter of last year. The company lost $949 million on revenue of $200 million.

The EV market is such that investors are worried about sales of the industry giant Tesla. Ford said it would lose money on EVs again this year. Ford, GM, and Hyundai/Kia are battling to get 10% of the market, without success so far.

If some of the largest car companies in the world are challenged to make money in the U.S. EV market, how can tiny Lucid have a chance?

Are Electric Cars Really Better for the Environment?

100 Million Americans Are Missing This Crucial Retirement Tool

The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.

Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.

A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.

Click here to learn how to get a quote in just a few minutes.