What took place
With electrical vehicle (EV) stocks obtaining hammered on Friday, Lucid stock (LCID -4.15%) could not escape the marketplace’s wrath either– shares of the EV start-up were trading down 5.8% as of 1:30 p.m. ET.
Lucid announced some growth strategies, yet the market was paying higher interest to an opponent’s just-released incomes report and some of things it claimed.
Earlier in March, Lucid revealed it’ll produce just 12,000 to 14,000 cars in 2022 versus its previous estimate of 20,000 devices, given the supply chain as well as logistics challenges. Today, a minimum of two automakers confirmed that the supply problems aren’t disappearing anytime soon.
A worried person in a mask studying a falling stock rate chart on a computer screen.
China-based Nio, which is likewise targeting the luxury EV market like Lucid, simply revealed weak assistance for distributions in the very first quarter due to provide chain obstacles as well as other headwinds. Nio likewise didn’t dismiss the possibility of price rises in the future if prices continue to climb. This mirrors Lucid’s view– hardly days back, Lucid pointed out inflationary pressure and claimed it’s checking into raising prices of its EVs in the near future, according to Reuters.
Meanwhile, tradition car manufacturer General Motors is closing down a factory in Indiana for two weeks because it’s lacking semiconductor chips.
These updates appear to have made investors in Lucid concerned about whether the business will even be able to produce as much as 14,000 cars provided the continuous crisis in the supply of raw material that can worsen if the Russia-Ukraine problem intensifies.
In the meantime, Lucid is focused on growth. Adhering to Tesla’s playbook, Lucid is targeting direct sales to end consumers via studios in prime retail locations and also will open its 2nd display room in Canada in March. The studio is located in Canada’s premier shopping mall, Yorkdale, in Toronto.
Significantly, Lucid validated it will certainly begin distributions in Canada this spring, its first market outside the U.S. Lucid has actually also created a compelling offer to tempt customers in Canada– those that schedule a Lucid Air by June 30 will get 2 years of free billing throughout Electrify Canada’s public EV charging network thanks to Lucid’s tie-up with the business. Electrify Canada currently has 30 stations with 120 battery chargers as well as is targeting greater than 100 terminals by 2026.
Lucid Group, Inc
Today’s Change (-4.15%) -$ 1.09.
On the flip side, while Lucid is still trying to build a client base in The United States and Canada, rivals Tesla and also Nio are currently increasing quickly right into Europe. With Tesla additionally opening up a Gigafactory in Berlin this week, Lucid will certainly have to function tougher to expand while keeping a look at prices. Investors aren’t sure if that’s possible today, and their concerns are shown in Lucid stock’s autumn today.