"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. 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)."
"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). The company hit a record production rate of 1,000 vehicles per week in December."
"However, more than five years later, Lucid trades for less than $11 per share, a loss of over 81% of its value. The decline is the result of production issues, sharply falling demand for electric vehicles (EVs), and a sticker price that was far greater than the market would bear."
Lucid began Gravity SUV production in 2024, and the vehicle's horsepower, acceleration, and long-range capabilities fueled record sales growth in 2025. The company acquired Nikola's production facilities and implemented management changes, with the COO named interim CEO. Timothée Chalamet became Global Brand Ambassador. Lucid struck a robotaxi deal with Uber, partnered with Nvidia, completed a 1-for-10 reverse stock split, and reached 1,000 vehicles per week production in December. Shares fell below $11, trading 65% lower year-over-year and more than 81% below 2021 peaks amid production issues, weak EV demand, and high pricing.
Read at 24/7 Wall St.
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