With electric automobile (EV) stocks getting hammered on Friday, Lucid stock price forecast (LCID -4.15%) could not escape the marketplace’s rage either– shares of the EV startup were trading down 5.8% as of 1:30 p.m. ET.
Lucid announced some growth strategies, however the market was paying better focus to a competitor’s just-released earnings report and some of the things it claimed.
Previously in March, Lucid introduced it’ll generate only 12,000 to 14,000 automobiles in 2022 versus its previous projection of 20,000 units, given the supply chain as well as logistics challenges. Today, a minimum of two automakers validated that the supply issues aren’t going away anytime soon.
A concerned person in a mask examining a falling stock price graph on a computer system display.
China-based Nio, which is also targeting the deluxe EV market like Lucid, simply introduced weak advice for shipments in the very first quarter as a result of provide chain difficulties and also other headwinds. Nio additionally didn’t eliminate the opportunity of rate increases in the future if prices continue to increase. This echoes Lucid’s belief– barely days ago, Lucid cited inflationary pressure and stated it’s checking out boosting rates of its EVs in the future, according to Reuters.
At the same time, legacy automaker General Motors is shutting down a factory in Indiana for two weeks because it’s running out of semiconductor chips.
These updates appear to have actually made investors in Lucid apprehensive about whether the business will even have the ability to create approximately 14,000 vehicles given the recurring crisis in the supply of raw material that could get worse if the Russia-Ukraine problem rises.
For now, Lucid is focused on development. Adhering to Tesla’s playbook, Lucid is targeting direct sales to end consumers through studios in prime retail areas and also will certainly open its 2nd display room in Canada in March. The studio is located in Canada’s premier shopping mall, Yorkdale, in Toronto.
Notably, Lucid confirmed it will certainly start shipments in Canada this springtime, its first market outside the U.S. Lucid has actually also thought of a compelling deal to entice customers in Canada– those who reserve a Lucid Air by June 30 will obtain two years of free of charge charging 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 battery chargers and also is targeting greater than 100 stations by 2026.
Lucid Group, Inc
Today’s Modification (-4.15%) -$ 1.09.
On the other side, while Lucid is still trying to develop a client base in North America, measures up to Tesla and Nio are currently expanding swiftly right into Europe. With Tesla additionally opening a Gigafactory in Berlin today, Lucid will need to function more challenging to expand while maintaining an examine expenses. Financiers aren’t sure if that’s feasible now, as well as their worries are reflected in Lucid stock’s autumn today.