-
Lucid’s stock prices are on the decline, reflecting a broader downturn in the electric vehicle (EV) sector.
-
The ratings for EV companies have dropped following some critical remarks made by Tesla CEO Elon Musk regarding a budget proposal from President Trump.
-
Trade concerns and various macroeconomic factors could significantly influence how Lucid is perceived moving forward.
On Thursday, Lucid’s shares, traded under NASDAQ: LCID, fell by 4% by 2:30 PM. During that same period, the S&P 500 and Nasdaq Composite both experienced a modest drop of 0.3%.
Lucid’s stock is under pressure partly due to Musk’s recent criticisms of the spending bill tied to Trump, which has also caused Tesla shares to plummet by 10.3% as of the same time.
Musk has been vocal on social media, openly criticizing the budget bill and suggesting it complicates the challenges for legislative supporters. Interestingly, Trump implied that Musk’s comments stem from a perceived lack of support for the EV industry within that bill. Investors, however, might see this as part of Musk’s broader strategy against Trump’s seemingly low-cooperation with EV policies.
Recently, Lucid announced a multi-year agreement with Graphite One for sourcing graphite from the U.S. This move aims to bolster Lucid’s supply chain domestically, yet uncertainties linger regarding the impact of ongoing trade disputes on the company’s operations. Profitability remains a distant goal for EV manufacturers, who need to significantly increase production and sales to cover operational expenses.
In the foreseeable future, Lucid might face substantial losses, although funding from Saudi Arabia’s public investment fund—its majority stakeholder—may provide some cushion. Yet, repeated inventory dilution remains a risk for retail investors.
These factors are crucial to consider if you’re thinking about buying stock in Lucid Group.
The Motley Fool’s analysts believe there are better investment opportunities available right now. The stocks they highlight have potential for significant returns in the coming years, while Lucid is not among them.
