What took place
With electrical automobile (EV) stocks obtaining hammered on Friday, Lucid stock price today (LCID -4.15%) couldn’t run away the market’s rage either– shares of the EV startup were trading down 5.8% as of 1:30 p.m. ET.
Lucid introduced some growth plans, but the market was paying better focus to an opponent’s just-released profits report and a few of the things it said.
Earlier in March, Lucid announced it’ll produce only 12,000 to 14,000 vehicles in 2022 versus its previous forecast of 20,000 systems, offered the supply chain and logistics obstacles. Today, at least two automakers validated that the supply problems aren’t vanishing anytime soon.
A concerned person in a mask studying a dropping stock cost graph on a computer screen.
China-based Nio, which is also targeting the deluxe EV market like Lucid, simply introduced weak support for deliveries in the initial quarter due to supply chain difficulties as well as various other headwinds. Nio additionally really did not eliminate the possibility of cost rises in the future if prices continue to climb. This echoes Lucid’s view– hardly days earlier, Lucid pointed out inflationary pressure and said it’s considering boosting prices of its EVs in the near future, according to Reuters.
Meanwhile, legacy automaker General Motors is shutting down a manufacturing facility in Indiana for 2 weeks since it’s running out of semiconductor chips.
These updates appear to have actually made financiers in Lucid concerned about whether the business will certainly also have the ability to create as much as 14,000 lorries given the continuous crisis in the supply of raw material that could aggravate if the Russia-Ukraine dispute escalates.
For now, Lucid is concentrated on growth. Complying with Tesla’s playbook, Lucid is targeting direct sales to finish customers via studios in prime retail areas as well as will open its 2nd display room in Canada in March. The studio is located in Canada’s premier shopping center, Yorkdale, in Toronto.
Significantly, Lucid validated it will certainly start shipments in Canada this spring, its first market outside the U.S. Lucid has actually likewise developed a compelling offer to draw customers in Canada– those who reserve a Lucid Air by June 30 will certainly obtain 2 years of free billing across Electrify Canada’s public EV billing network thanks to Lucid’s tie-up with the company. Electrify Canada presently has 30 terminals with 120 chargers and is targeting greater than 100 stations by 2026.
Lucid Team, Inc
Today’s Modification (-4.15%) -$ 1.09.
On the other side, while Lucid is still attempting to construct a client base in The United States and Canada, equals Tesla and Nio are currently expanding quickly right into Europe. With Tesla additionally opening up a Gigafactory in Berlin this week, Lucid will certainly need to work more challenging to expand while keeping a look at expenses. Investors aren’t sure if that’s possible right now, and their anxieties are shown in Lucid stock’s fall today.