With electric automobile (EV) stocks getting hammered on Friday, Lucid stock price today (LCID -4.15%) couldn’t run away the marketplace’s rage either– shares of the EV startup were trading down 5.8% as of 1:30 p.m. ET.
Lucid announced some development plans, yet the market was paying greater focus to an opponent’s just-released profits record and also a few of things it stated.
Earlier in March, Lucid introduced it’ll produce only 12,000 to 14,000 cars and trucks in 2022 versus its previous forecast of 20,000 devices, offered the supply chain and logistics obstacles. Today, at least two automakers verified that the supply problems aren’t disappearing anytime soon.
A worried person in a mask studying a falling stock cost chart on a computer screen.
China-based Nio, which is likewise targeting the high-end EV market like Lucid, just introduced weak assistance for deliveries in the first quarter due to provide chain challenges and various other headwinds. Nio also really did not dismiss the opportunity of cost increases in the future if prices remain to rise. This mirrors Lucid’s belief– barely days ago, Lucid cited inflationary pressure and also claimed it’s looking into raising costs of its EVs in the future, according to Reuters.
On the other hand, heritage car manufacturer General Motors is shutting down a factory in Indiana for two weeks since it’s running out of semiconductor chips.
These updates appear to have made capitalists in Lucid anxious about whether the company will certainly even be able to produce as much as 14,000 vehicles given the continuous crisis in the supply of raw material that might intensify if the Russia-Ukraine conflict escalates.
For now, Lucid is concentrated on growth. Adhering to Tesla’s playbook, Lucid is targeting direct sales to finish consumers through workshops in prime retail places and also will certainly open its second showroom in Canada in March. The studio is located in Canada’s premier shopping mall, Yorkdale, in Toronto.
Significantly, Lucid verified it will certainly start deliveries in Canada this spring, its very first market outside the united state Lucid has additionally thought of a compelling deal to lure consumers in Canada– those that reserve a Lucid Air by June 30 will certainly get 2 years of complimentary charging across Electrify Canada’s public EV charging network thanks to Lucid’s tie-up with the firm. Electrify Canada presently has 30 stations with 120 battery chargers and also is targeting greater than 100 stations by 2026.
Lucid Group, Inc
Today’s Adjustment (-4.15%) -$ 1.09.
On the other hand, while Lucid is still attempting to develop a client base in The United States and Canada, rivals Tesla and also Nio are currently increasing swiftly into Europe. With Tesla also opening up a Gigafactory in Berlin today, Lucid will have to function more challenging to expand while maintaining a look at costs. Financiers aren’t sure if that’s feasible today, and their anxieties are shown in Lucid stock’s fall today.