With electrical car (EV) stocks getting hammered on Friday, Lucid stock price today (LCID -4.15%) could not run away the market’s wrath either– shares of the EV startup were trading down 5.8% as of 1:30 p.m. ET.
Lucid revealed some development strategies, yet the market was paying greater focus to an opponent’s just-released incomes report and also several of things it stated.
Earlier in March, Lucid introduced it’ll produce just 12,000 to 14,000 automobiles in 2022 versus its previous projection of 20,000 systems, offered the supply chain as well as logistics difficulties. Today, a minimum of 2 automakers validated that the supply concerns aren’t disappearing anytime quickly.
A worried individual in a mask researching a dropping stock price chart on a computer screen.
China-based Nio, which is also targeting the high-end EV market like Lucid, simply announced weak assistance for shipments in the first quarter as a result of supply chain obstacles as well as other headwinds. Nio also didn’t dismiss the possibility of price increases in the near future if prices continue to rise. This mirrors Lucid’s belief– barely days back, Lucid pointed out inflationary pressure as well as claimed it’s checking into enhancing costs of its EVs in the near future, according to Reuters.
At the same time, heritage automaker 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 uncertain about whether the business will certainly also be able to produce up to 14,000 lorries provided the continuous crisis in the supply of basic material that can aggravate if the Russia-Ukraine conflict intensifies.
For now, Lucid is concentrated on development. Complying with Tesla’s playbook, Lucid is targeting straight sales to end consumers through studios in prime retail areas and also will certainly open its 2nd display room in Canada in March. The workshop lies in Canada’s premier shopping mall, Yorkdale, in Toronto.
Importantly, Lucid confirmed it will certainly start shipments in Canada this springtime, its initial market outside the U.S. Lucid has actually likewise developed a compelling offer to entice consumers in Canada– those that schedule a Lucid Air by June 30 will get two years of complimentary billing across Electrify Canada’s public EV billing network thanks to Lucid’s tie-up with the company. Electrify Canada currently has 30 stations with 120 chargers and is targeting more than 100 stations by 2026.
Lucid Group, Inc
Today’s Modification (-4.15%) -$ 1.09.
On the other hand, while Lucid is still trying to build a client base in North America, rivals Tesla and also Nio are already expanding swiftly into Europe. With Tesla also opening a Gigafactory in Berlin today, Lucid will certainly have to function more difficult to expand while keeping a check on prices. Investors aren’t certain if that’s possible today, and also their fears are mirrored in Lucid stock’s loss today.