"Lucid Group Inc. ( NASDAQ: LCID) sold a tiny number of vehicles in the third quarter. The $7,500 tax credit on electric vehicles (EVs) probably made that number less tiny. However, the expiration of the credit will likely reduce the tiny number in the fourth quarter and beyond. The news drove the stock down 10%, adding yesterday's trading to the morning's. The company announced that it delivered 4,078 vehicles and produced 3,891. About 1,000 were assembled in Saudi Arabia. The kingdom is Lucid's largest shareholder, via various investment companies."
"Lucid is too small to survive and too expensive to acquire. Based on its finances, no one would pay close to the stock price anyway. Although it had declined by almost 90% over the past five years, Lucid still has a market capitalization of nearly $7 billion. Ford's value is approximately $50 billion, but it is one of the largest car companies in the world."
Lucid delivered 4,078 vehicles and produced 3,891 in the third quarter, with about 1,000 assembled in Saudi Arabia, its largest shareholder. The $7,500 EV tax credit likely boosted sales, but the credit expired and will likely reduce deliveries in the fourth quarter and beyond. The stock fell about 10% on the news. Key issues include disappointing delivery numbers, many models priced above tax-credit thresholds for purchases, and a reverse stock split. Lucid has lost roughly 90% over five years yet still carries a market capitalization near $7 billion, while base prices start at about $70,000.
Read at 24/7 Wall St.
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