"This year, the company announced it would acquire production facilities from bankrupt electric truck maker Nikola, as well as management changes, including the chief executive stepping down and the chief operating officer becoming interim CEO. Actor Timothée Chalamet was named its first-ever Global Brand Ambassador, and Lucid made a robotaxi deal with Uber. Lucid effected a 1-for-10 reverse stock split, and it announced a major collaboration with AI chipmaker Nvidia Corp. ( NASDAQ: NVDA)."
"Majority-owned by the Saudi government's Public Investment Fund (PIF) sovereign wealth fund, the merger attracted $4.5 billion in new capital. The stock quickly ran up from its opening price of $25.24 on July 26, 2021, to an intraday high of $56.70 on Nov. 30, giving it a market cap of $90 billion. It made Lucid more valuable than Ford Motor Co. ( NYSE: F)."
"The share price recently sank to a multiyear below $12. The stock is 42.3% lower than a year ago, well underperforming the broader markets. The stock has been fairly volatile in the past year, with shares trading in a range of $11.46 to $36.40 (split-adjusted). Luxury electric vehicle maker Lucid was a highly anticipated startup in 2021 when it went public through a reverse merger with the special purpose acquisition company (SPAC) Churchill Capital IV."
Lucid began production of the Gravity luxury electric SUV, marketed for horsepower, acceleration, and long-range capability, and linked to a strong 2025 sales forecast. The company announced acquisition of Nikola production facilities and management changes, with the CEO stepping down and the COO becoming interim CEO. Timothée Chalamet was named Global Brand Ambassador, and Lucid signed a robotaxi deal with Uber. The company effected a 1-for-10 reverse stock split and announced a collaboration with Nvidia. Despite SPAC backing and $4.5 billion from the Saudi Public Investment Fund, the stock has fallen from 2021 peaks to below $13 per share. Production issues, falling EV demand, and pricing above market tolerance have driven the decline and volatility.
Read at 24/7 Wall St.
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