[ad_1]
Sometimes it seems that way lucid group (NASDAQ:LCID) I can’t take a day off these days. Luxury car stocks fell to all-time lows earlier this month on recall news to counter an overall slowdown in electric vehicle (EV) sales growth.
While the stock didn’t hit a new low on Thursday, it still fell nearly 6% on the day. To be fair, this wasn’t the company’s own fault.
A famous fellow was sputtered
Not everything good or bad about the EV industry comes from the leading players in the space. tesla (NASDAQ:TSLA)what happens with the standard bearer often sets the tone for the entire EV stock.
That’s why some of them delivered body blows to the stock on Thursday. Tesla provided a major update, but it wasn’t all that encouraging.
Specifically, the company announced its fourth quarter results after the market closed the previous day. The numbers did not impress investors, especially considering the company’s high valuation. For example, revenue rose only 3% year-over-year, while non-GAAP (adjusted) earnings per share fell a dizzying 40%. Both items fell short of average estimates drawn from the many analysts tracking the stock.
Lucid is not Tesla, and it’s not necessarily fair that small companies should be sold primarily through unions. But there are enough similarities between the two to make investors concerned about the company’s future as well, as Lucid focuses on luxury models that are no different from Tesla’s more expensive offerings. In addition to this, Lucid is significantly less capitalized and has a less diverse product lineup.
Risk-averse investors need not apply
I don’t think investors should necessarily give up on Lucid, but this is a stock only for those with a strong appetite for risk.
The company’s EVs have been well-received and are certainly appealing to a select affluent demographic. On the downside, the company is far from proving it can sell such products profitably and consistently, especially at a time when consumers seem to be getting over their excitement about EVs. Be careful with his Lucid stock these days.
Should you invest $1,000 in Lucid Group now?
Before buying Lucid Group stock, consider the following:
of Motley Fool Stock Advisor Our analyst team has identified what they believe Best 10 stocks What investors can buy right now…and Lucid Group wasn’t among them. These 10 stocks have the potential to generate impressive returns over the next few years.
stock advisor We provide investors with an easy-to-understand blueprint for success, including guidance on portfolio construction, regular updates from analysts, and two new stocks every month.of stock advisor Since 2002, the service has more than tripled S&P 500 returns*.
See 10 stocks
*Stock Advisor will return as of January 22, 2024
Eric Volkman has no position in any stocks mentioned. The Motley Fool has a position in and recommends Tesla. The Motley Fool has a disclosure policy.
Was Lucid Stock unfairly punished by the market today? Originally published by The Motley Fool
[ad_2]
Source link
