Written by Cláudio Afonso | LinkedIn | X
Shares of electric vehicle maker Lucid Motors fell to a new all-time low on Friday, dropping below the $2 mark for the first time. The Saudi-backed automaker faces growing challenges as it gears up for the mass production of its second model, the Lucid Gravity SUV, which is slated to begin within the next six weeks.
The company’s stock is under pressure due to a combination of internal and external factors. Externally, Reuters reported on Thursday that President-elect Donald Trump’s transition team is considering eliminating the $7,500 consumer tax credit for electric vehicle purchases as part of broader tax-reform legislation.
Under current law, consumers can receive up to $7,500 for new EV purchases and up to $4,000 for used EVs, provided they meet income requirements. If enacted, the proposed changes could prevent EV purchases made in January from qualifying for the credit when filing 2025 taxes.
Internally, and as reported by EV, Lucid‘s Vice President of Marketing and Communications Andrea Soriani became the latest of eight top executives leaving the premium car manufacturer since October 2023.
Earlier this month, the company opened U.S. orders for the Gravity SUV but revealed that the vehicle will initially launch in its high-end Grand Touring trim, priced at $94,900—roughly $15,000 higher than the $80,000 price tag previously communicated with the company releasing that trim “in late 2025.”
Fully loaded, the Gravity Grand Touring variant can cost up to $125,000, featuring 828 horsepower and a projected range exceeding 440 miles.
The delay in offering lower-priced trims has drawn criticism from potential customers and shareholders. Lucid aims to produce over 9,000 vehicles in 2024, but it remains unclear whether deliveries the target includes any Gravity deliveries or not. So far, the company has not confirmed any date for the first deliveries of its second model.
Third quarter revenue from North America, Lucid’s largest market, fell 5% sequentially to $147.4 million in Q3, down from $155.1 million in Q2 despite the company reporting a new record of global deliveries for the third quarter. The figures hint at a lower number of vehicle sales in the region.
Lucid shares have fallen nearly 40% since peaking at $4.43 in late August and are now down 44% year-to-date. As of Friday afternoon, the stock was trading 5% lower at $1.97.
R.F. Lafferty has recently upgraded Lucid shares from Hold to Buy while setting a price target of $4 following the electric vehicle maker’s third-quarter earnings results reported last week citing “cost improvement, continued volume growth, and balance sheet strength.”
Lucid Motors CEO Peter Rawlinson commented on Chinese competitors in a new interview released this weekend where he reiterated that the companies are “certainly heavily subsidized by central governments.”
In the same interview, Lucid’s CEO criticized the quality of electric vehicles available in the U.S., stating that many Americans have found their experiences with EVs underwhelming.
Written by Cláudio Afonso | LinkedIn | X
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