What took place
With electric car (EV) stocks obtaining hammered on Friday, Lucid stock price today (LCID -4.15%) couldn’t get away the market’s wrath either– shares of the EV startup were trading down 5.8% since 1:30 p.m. ET.
Lucid introduced some development plans, but the market was paying better interest to a competitor’s just-released earnings report and also several of the important things it stated.
Previously in March, Lucid introduced it’ll create only 12,000 to 14,000 vehicles in 2022 versus its previous estimate of 20,000 systems, offered the supply chain as well as logistics challenges. Today, a minimum of two automakers validated that the supply issues aren’t vanishing anytime quickly.
An anxious person in a mask researching a falling stock rate graph on a computer display.
China-based Nio, which is additionally targeting the deluxe EV market like Lucid, just revealed weak support for distributions in the first quarter because of provide chain obstacles and also various other headwinds. Nio likewise didn’t eliminate the possibility of cost rises in the near future if prices remain to climb. This echoes Lucid’s view– barely days back, Lucid pointed out inflationary pressure and also said it’s checking into boosting costs of its EVs in the future, according to Reuters.
At the same time, tradition car manufacturer General Motors is closing down a factory in Indiana for 2 weeks due to the fact that it’s lacking semiconductor chips.
These updates appear to have made investors in Lucid concerned about whether the firm will also have the ability to generate approximately 14,000 cars offered the ongoing problem in the supply of resources that could aggravate if the Russia-Ukraine dispute rises.
In the meantime, Lucid is concentrated on growth. Adhering to Tesla’s playbook, Lucid is targeting direct sales to end customers via studios in prime retail locations and also will open its second showroom in Canada in March. The studio is located in Canada’s premier shopping center, Yorkdale, in Toronto.
Importantly, Lucid confirmed it will certainly start distributions in Canada this springtime, its very first market outside the U.S. Lucid has additionally developed a compelling deal to lure clients in Canada– those who book a Lucid Air by June 30 will obtain 2 years of complimentary billing across Electrify Canada’s public EV charging network thanks to Lucid’s tie-up with the business. Electrify Canada currently has 30 terminals with 120 battery chargers as well as is targeting greater than 100 terminals by 2026.
Lucid Team, Inc
Today’s Modification (-4.15%) -$ 1.09.
On the other side, while Lucid is still trying to develop a consumer base in The United States and Canada, measures up to Tesla and also Nio are currently increasing swiftly right into Europe. With Tesla likewise opening up a Gigafactory in Berlin today, Lucid will certainly need to function more difficult to grow while keeping an examine prices. Financiers aren’t sure if that’s feasible today, as well as their fears are mirrored in Lucid stock’s loss today.