With electrical lorry (EV) stocks obtaining hammered on Friday, Lucid stock price today (LCID -4.15%) could not escape the marketplace’s rage either– shares of the EV start-up were trading down 5.8% since 1:30 p.m. ET.
Lucid introduced some growth plans, however the market was paying higher interest to a rival’s just-released earnings report and also some of things it claimed.
Earlier in March, Lucid introduced it’ll generate just 12,000 to 14,000 autos in 2022 versus its previous projection of 20,000 systems, provided the supply chain and logistics challenges. Today, a minimum of 2 automakers confirmed that the supply concerns aren’t disappearing anytime soon.
An anxious person in a mask studying a falling stock rate graph on a computer screen.
China-based Nio, which is also targeting the luxury EV market like Lucid, just announced weak advice for distributions in the first quarter as a result of provide chain challenges as well as other headwinds. Nio also really did not eliminate the opportunity of price rises in the near future if costs continue to rise. This echoes Lucid’s view– hardly days back, Lucid mentioned inflationary pressure and also stated it’s checking into increasing costs of its EVs in the near future, according to Reuters.
Meanwhile, legacy car manufacturer General Motors is closing down a manufacturing facility in Indiana for 2 weeks since it’s lacking semiconductor chips.
These updates appear to have made investors in Lucid anxious concerning whether the firm will certainly even be able to generate as much as 14,000 automobiles given the continuous crunch in the supply of resources that might worsen if the Russia-Ukraine problem intensifies.
In the meantime, Lucid is concentrated on growth. Adhering to Tesla’s playbook, Lucid is targeting straight sales to finish customers via workshops in prime retail locations as well as will certainly open its 2nd showroom in Canada in March. The workshop is located in Canada’s premier shopping mall, Yorkdale, in Toronto.
Notably, Lucid verified it will certainly start distributions in Canada this spring, its first market outside the U.S. Lucid has actually additionally thought of a compelling deal to lure customers in Canada– those who book 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 business. Electrify Canada currently has 30 terminals with 120 chargers and is targeting more than 100 terminals by 2026.
Lucid Group, Inc
Today’s Modification (-4.15%) -$ 1.09.
On the other hand, while Lucid is still attempting to build a client base in North America, rivals Tesla and Nio are already expanding rapidly right into Europe. With Tesla also opening a Gigafactory in Berlin today, Lucid will certainly have to function more difficult to expand while maintaining a look at costs. Capitalists aren’t certain if that’s possible now, as well as their anxieties are shown in Lucid stock’s fall today.