LCID Sell Alert: Time to Send Lucid Stock to the Junkyard (2024)

LCID Sell Alert: Time to Send Lucid Stock to the Junkyard (1)LCID Sell Alert: Time to Send Lucid Stock to the Junkyard (2)

LCID

With consumers moving away from fully electric vehicles in favor of gas/electric hybrids, now is not the time to invest in Lucid Group LCID. Lucid stock has steadily declined as the company struggles with waning demand and an ongoing series of production problems.

Since going public in 2021, Lucid stock has fallen over 70% and the share price is now below $3. That places the company on the penny stockleague tables. While some people might be tempted to bottom fish the stock, any investment at this point is likely to end in tears.

Expensive Vehicles

At the end of May, Lucid announced that it is cutting 6% of its workforce, or about 400 employees, as its struggles with a sales decline and slowing growth.

The company said in a news release that it will incur $25 million in charges related to the workforce reduction, which it plans to complete by the end of this year’s third quarter. At the end of 2023, Lucid had 6,500 full-time employees worldwide.

While the company’s main electric vehicle, the Lucid Air sedan, has won critical praise from analysts and the automotive press, its high price has led to poor sales.

Currently, the base model Lucid Air costs just under $70,000and the top model costs more than $250,000. The steep price has placed Lucid firmly in the luxury vehicle camp and put its EVs out of reach for most consumers.

Unprofitable Company

Lucid has announced plans to build a new mid-size electric sport utility vehicle with a starting price of around $48,000. But production on that cheaper vehiclewon’t begin until late 2026, with the electric SUV not hitting the market until 2027, at the earliest. Compounding problems is the fact that Lucid remains unprofitable and is bleeding cash.

The company recently reported a loss per share of 30 cents, which was greater than estimates of a 25 cent loss. Slumping demand and continued production problems have led Lucid to produce fewer vehicles. In this year’s first quarter, the company produced 1,728 electric vehicles.

That was down 28% from 2,391 EVs produced in the previous fourth quarter of 2023. Lucid said that it has $4.62 billion of cash on hand, enough to last until the second quarter of next year.

Sector Issues

Beyond Lucid’s internal problems, the entire sector is facing challenges as a lack of infrastructure needed to support electric vehicles leads consumers to buy gas-electric hybrid vehicles instead.

While the federal government in Washington, D.C. has allocated $7.5 billion to build tens of thousands of electric vehicle chargers across the U.S., at the end of 2023, not a single charger had been installed.

A study by the Pew Research Center that was published in May of this year found that the distribution of EV chargers is uneven across the country.

While there are 61,000 publicly accessible electric vehicle charging stations in the U.S. today, most of them (60%) are located in urban centers compared to 41% in the suburbs and only 17% in rural communities. Plus, a quarter (25%) of all public EV chargers in the U.S. can be found in one state: California.

Analysts say that for there to be widespread adoption of electric vehicles, public EV charging stations need to become as ubiquitous as gas stations. The other big issue plaguing the industry is the time it takes to charge an electric vehicle battery.

It currently takes anywhere from 30 minutes to more than 12 hours to charge an EV battery, with the average time around eight hours. Compare that to less than two minutes to fill a tank with gas, and it’s no wonder that consumers have concluded that EVs are impractical to own.

Sell Lucid Stock

Lucid is now a penny stock. Since the company went public three years ago, its share price has steadily fallen. This is because of factors that include poor execution, a lack of profits, and expensive electric vehicles that are out of reach for most Americans.

Add in the fact that consumers appear to have thrown in the towel on electric vehicles amid a lack of infrastructure to support them and there really is no reason to risk money on this company. Lucid stock is not a buy.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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LCID Sell Alert: Time to Send Lucid Stock to the Junkyard (2024)

FAQs

How high is Lucid stock expected to go? ›

Stock Price Forecast

The 9 analysts with 12-month price forecasts for Lucid Group stock have an average target of 3.71, with a low estimate of 2.90 and a high estimate of 5.00. The average target predicts an increase of 17.78% from the current stock price of 3.15.

Will Lucid stock reach $100? ›

Will Lucid Group, Inc. stock reach $100? Lucid Group, Inc. stock would need to gain 3,157.22% to reach $100. According to our Lucid Group, Inc. stock forecast, the price of Lucid Group, Inc. stock will not reach $100. The highest expected price our algorithm estimates is $ 20.67 by Jul 29, 2025.

Should I hold Lucid stock? ›

Lucid stock has received a consensus rating of hold. The average rating score is and is based on 13 buy ratings, 16 hold ratings, and 10 sell ratings.

What is the fair value of Lucid stock? ›

As of 2024-08-08, the Fair Value of Lucid Group Inc (LCID) is -5.92 USD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 2.91 USD, the upside of Lucid Group Inc is -303.3%.

What will Lucid stock be worth in 2025? ›

Lucid stock price stood at $2.91
YearMid-YearYear-End
2025$3.10$3.35
2026$3.70$4.12
2027$4.60$5.19
2028$5.55$5.69
9 more rows

What is the price outlook for Lcid? ›

Based on short-term price targets offered by nine analysts, the average price target for Lucid Group comes to $3.60. The forecasts range from a low of $2.90 to a high of $5.00. The average price target represents an increase of 15.38% from the last closing price of $3.12.

Will Lucid make you a millionaire? ›

For a $15,000 investment to make you a millionaire, Lucid stock would have to climb roughly 67 times above current levels. Assuming the company's share count held constant, the EV upstart would have a market capitalization of roughly $462 billion at that price.

Will Lucid become a penny stock? ›

Lucid (LCID): Hedge Funds Accumulate This Penny Stock. Shares of the electric vehicle (EV) maker Lucid Group (NASDAQ:LCID) have underperformed the broader market year-to-date. However, hedge funds, popular for generating above-average returns, are optimistic about this penny stock (learn more about penny stocks here).

Can Lucid survive? ›

Lucid expects its $4.78 billion in liquidity at the end of 2023 to last through "at least" 2025 as it ramps up its production of the Gravity SUV, but analysts expect it to continue burning cash at an alarming rate: it's expected to generate negative annual free cash flows (FCF) of $3.51 billion in 2024, $2.65 billion ...

Is Lucid or Tesla better? ›

There's no question that the Lucid Air Sapphire is a better car than the Tesla Model S Plaid. It's brilliant to drive as a canyon-carving supersports sedan and a cross-country grand tourer. Its exceptional range and fast-charging capability challenge Tesla's reputation as the untouchable EV technology leader.

Why is Lucid stock sinking? ›

Shares of Lucid Group (LCID -3.85%) were down sharply on Tuesday after new economic data raised fears of a recession. At 2:30 p.m. ET, Lucid's shares were down about 8.2% from Wednesday's closing price. Lucid aims to get its new Gravity electric luxury SUV into production by year's end.

Are people buying Lucid cars? ›

In the first quarter of this year, Lucid sold only 600 cars, according to the trade industry publication Automotive News. Lucid's competition is doing better. In that same first quarter, Tesla sold 6000 of the Lucid Air's main competitor, the Model S.

What is the highest lucid stock has ever been? ›

The latest closing stock price for Lucid as of August 02, 2024 is 3.12.
  • The all-time high Lucid stock closing price was 58.05 on February 18, 2021.
  • The Lucid 52-week high stock price is 7.29, which is 133.7% above the current share price.

What is a good price for Lucid stock? ›

Average Price Target

Based on 9 Wall Street analysts offering 12 month price targets for Lucid Group in the last 3 months. The average price target is $3.01 with a high forecast of $4.00 and a low forecast of $1.00.

Is Lucid a buy rating? ›

Valuation metrics show that Lucid Group, Inc. may be overvalued. Its Value Score of F indicates it would be a bad pick for value investors.

What is Lucid highest stock price? ›

The latest closing stock price for Lucid as of August 08, 2024 is 3.15.
  • The all-time high Lucid stock closing price was 58.05 on February 18, 2021.
  • The Lucid 52-week high stock price is 6.80, which is 115.9% above the current share price.

Which are the best stocks to invest in 2024? ›

Best stocks in 2024
S.No.NameCMP Rs.
1.Man Infra189.35
2.BLS Internat.391.85
3.Black Box548.00
4.RHI Magnesita598.10
22 more rows

What will Rivian stock be worth in 2025? ›

Long-Term Rivian Automotive, Inc. Stock Price Predictions
YearPredictionChange
2025$ 12.40-17.15%
2026$ 10.27-31.36%
2027$ 8.51-43.14%
2028$ 7.05-52.89%
2 more rows

What is the moving average of Lucid stock? ›

What is LCID's 50-day moving average? LCID's 50-day moving average is 3.01, which suggests LCID is a Buy. What is LCID's 200-day moving average? LCID's 200-day moving average is 3.34, which suggests LCID is a Sell.

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