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lucid group (NASDAQ:LCID) Shares have stalled again in Friday trading. The electric vehicle (EV) company’s stock was down 7.1% as of 1:15 p.m. ET, according to data from S&P Global Market Intelligence.
News broke today that Lucid will be recalling more than 2,000 vehicles, following a delivery and production report released by the company yesterday. According to the announcement, the cause of the recall may be a defective high-voltage coolant heater and includes both 2022 and 2023 Lucid Air models.
Lucid stock sinks to another new low
Yesterday, Lucid stock hit a new all-time low after the company released an update on deliveries and production for the fourth quarter of last year. Investors got more bad news with today’s news about a major recall for the Lucid Air luxury sedan — and the company’s stock hit a new low in today’s trading.
In the fourth quarter of 2023, Lucid produced 2,391 vehicles and delivered 1,734 vehicles. In other words, the recently announced recall affects more vehicles than the company delivered last quarter. To elaborate a bit more, the EV company produced 8,428 vehicles last year, and during the same period he delivered 6,001 vehicles.
What’s next for Lucid?
It’s not uncommon for young, niche companies in relatively new industries to face growing pains. On the other hand, the EV market is already highly competitive and is expected to become even more so in the future.
Lucid has posted significant losses and needs to significantly expand production and distribution to return to profitability. The company’s vehicles have been praised and generally held in high esteem, but the recent recalls are a significant setback. The company has also struggled to meet production targets recently.
Lucid is scheduled to announce its fourth quarter financial results on February 21st and will hold a conference call to provide further information about its results and business outlook for the period.
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Keith Noonan has no position in any stocks mentioned. The Motley Fool has no position in any stocks mentioned. The Motley Fool has a disclosure policy.
Why Lucid Stock Is Plumming Again Today was originally published by The Motley Fool
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