Lucid Stock Collapse Continues as Shares Fall 30 This Year

Lucid stock collapse continues as shares fall 30 this year. The company's stock price has plummeted, with a significant decline in its market value.

Lucid's stock has lost nearly a third of its value in 2023, a staggering drop that has left investors reeling. This decline is a major concern for the company's future prospects.

The main reason for this collapse is the company's failure to meet sales projections. Lucid had promised to deliver a certain number of vehicles by the end of 2023, but it has fallen short of those targets.

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Lucid stock has taken a significant hit in recent months, with a 20% drop in pre-market trading following a new share offering. This comes on top of a 30% decline in 2024 and a whopping 44% drop over the past 12 months.

Lucid's stock prices have been affected by a new share offering, which was announced after the company revealed a $1.5 billion commitment from Saud's PIF. This commitment was made after Lucid ended the second quarter with $4.28 billion in liquidity, enough to fund the company through Q4 2025.

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Lucid's Q3 revenue is expected to be between $199 million and $200 million, according to an SEC filing. This is a significant drop from the company's previous financial performance.

The electric vehicle (EV) industry as a whole is experiencing a historic sell-off, with some stocks down 90% from their peak. This includes formerly high-flying stocks like Rivian, Lucid, and Xpeng, which have seen significant declines in value.

Here are some key statistics on the EV stock bubble:

The industry is facing several headwinds, including higher borrowing costs, slow growth in Europe, and expiring subsidies. These factors have contributed to the decline in EV stock prices.

Lucid's shares have been extremely volatile, with 54 moves greater than 5% over the last year. This volatility suggests the market is paying close attention to the company's developments.

The stock's recent drop is not the biggest move we've seen, as it fell 19.5% two months ago due to the announcement of a massive underwritten public offering. This move was a significant one, and it's worth noting that the company is expected to raise a substantial $1.67 billion from the offerings.

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Lucid's stock price is likely to be negatively impacted by the newly issued shares, which will dilute the ownership of existing shareholders. Ayar Third Investment Company, a majority stockholder, is expected to maintain approximately 58.8% ownership after buying 375 million shares of common stock.

The company's preliminary operating loss guidance for the third quarter is below analysts' expectations, with a projected loss of $765 million to $790 million. This news, combined with the other factors, has contributed to the stock's decline.

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Lucid stock is not the only EV stock struggling. EV stock indexes are trailing other carmakers by anywhere from 50% to 80%, according to Bloomberg data. This is a stark contrast to the pandemic era, when EV firms were hyped and multiple went public with valuations exceeding $100 billion.

In fact, almost all EV stocks that went public or merged with SPACs in the last 5 years are trading at lower than their debut price. This is a concerning trend, especially for investors who bought in during the hype. Even industry titans like Tesla and BYD are not immune to the rout.

Here's a comparison of some notable EV stocks that have taken a hit:

These numbers are a sobering reminder that the EV market is experiencing a historic sell-off.

Lucid's stock has been on a rollercoaster ride, with a 20% drop in pre-market trading following a new share offering. This comes on top of a 30% decline in 2024 and a whopping 44% drop over the past 12 months.

The new share offering was announced after Lucid revealed another $1.5 billion commitment from Saud's PIF, which has helped boost its liquidity to $4.28 billion. This should be enough to fund the company through Q4 2025.

Lucid's Q3 revenue is expected to be between $199 million and $200 million, according to an SEC filing. This is a significant milestone for the company, but it's unclear how it will impact the stock price.

If Lucid's stock continues to fall, investors should keep a close eye on the $2.65 level, which may find buying interest near the 50-day moving average and a horizontal line connecting two recent troughs in January and March. A breakdown below this key level could see the stock revisit its record low around $2.30.

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Here are some key chart levels to watch:

Lucid's stock was down 8.5% at $2.79 at around 7:00 a.m. ET, indicating that the selling pressure is still strong.

Tesla's stock price has seen a significant surge in recent years, outshining Rivian's performance. In 2020, Tesla's market capitalization surpassed $500 billion, a milestone that Rivian had yet to reach.

The company's strong financials and growing demand for its electric vehicles have contributed to its stock's success. Rivian's own stock price has been volatile, with a 2021 IPO that saw its value jump to $100 billion.

Tesla's widespread brand recognition and established customer base have helped drive its stock price up. Rivian, on the other hand, has focused on building a loyal following among outdoor enthusiasts.

Tesla's quarterly deliveries have consistently exceeded expectations, with over 500,000 vehicles delivered in 2021 alone. Rivian's deliveries, while impressive, have been more modest, with around 14,000 vehicles delivered in its first year as a public company.

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The historic sell-off in EV stocks is a stark reminder of the volatility of the market. The EV stock bubble has burst, and prices are tanking in a historic sell-off.

Formerly high-flying stocks like Rivian, Lucid, and Xpeng are down 80% to 90% from their peaks. Even EV king Tesla, recently dethroned by BYD as the world's largest EV maker, is down 22% over the past month.

EV stock indexes are trailing other carmakers by anywhere from 50% to 80%. This marks a sharp turnaround from the pandemic, when there was hype galore for EV firms.

Today, almost all EV stocks that went public or merged with SPACs in the last 5 years are trading at lower than their debut price. Many are significantly so.

Here are some key statistics illustrating the severity of the sell-off:

The industry is feeling headwinds in the form of higher interest rates, lackluster economic growth in Europe, and expiring EV subsidies. Demand has taken a hit with expiring EV subsidies in countries like Germany.

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