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Lucid (LCID) is getting booted from the Nasdaq 100 stock index – Electrek

EV maker Lucid (LCID) is expected to lose its spot on the Nasdaq 100 index by the end of the week as its stock comes under further pressure.

Lucid will be removed from the Nasdaq 100 Stock Index

This news is reported as part of the Nasdaq 100 annual changewill take effect next week, December 18th.

The index is a compilation of the 100 largest non-financial companies listed on the Nasdaq Stock Exchange. Lucid is among his six other companies, including Enphase (ENPH) and eBay (EBAY).

clear participated in the index The company made the announcement in December 2021 jointly with Lucid CFO Shelley House, calling it “recognition of our progress.”

The addition comes after Lucid went public in July and delivered its first Air electric vehicle in October. Two years later, the EV market has changed dramatically.

Lucid's deliveries decreased from a peak of 1,932 in Q4 2022 to 1,456 in the quarter. This number was up slightly from Q2 (1,404), but still nearly 30% lower than last year.

Lucid-Nasdaq-100-stock
Lucid Air electric sedan (Source: Lucid Motors)

Production volume has also declined by more than 50% from the peak of 3,493 units in the fourth quarter of 2022. Lucid produced just 1,550 units in the third quarter.

Last quarter, Lucid lowered its annual production target to just 8,000 to 8,500 units, a 50% drop from its high-end goal.

In addition to declining deliveries, Lucid's losses are piling up. The EV maker's net loss reached $2.17 billion in the first nine months of this year. In the third quarter, Lucid lost about $433,000 on every EV it manufactured.

Lucid-Gravity-Electric SUV
Lucid Gravity electric SUV (Source: Lucid Motors)

Nevertheless, the startup believes it is turning things around. House said the company had “made progress with the cost management program” it introduced earlier this year. The company's finance leader added that Lucid “has identified additional opportunities for 2024.”

Last month, Lucid unveiled Gravity, its first electric SUV with 440 miles of range, a luxurious interior, and three rows of seats. In October, it also began deliveries of the high-performance Air Sapphire, a rival to the Tesla Model S.

Gravity will begin rolling out in late 2024 with a starting price of less than $80,000. Lucid has significantly lowered the price of its electric sedan “Air” to increase demand.

Lucid-nasdaq-100-stock
Clear Stock IPO – Current (Source: TradingView)

Lucid's stock has fallen more than 90% from its all-time high and more than 45% in the past 12 months as it faces stiff competition from companies such as Tesla. Lucid stock fell more than 4% on Monday following the Nasdaq 100 news.

Electrek's view

Lucid has struggled to find its place in the premium EV segment. Tesla has been lowering prices throughout the year, putting pressure on startups to follow suit.

After a series of promotions, the fourth quarter should give us a better idea of ​​where Lucid stands. House said the company had $5.45 billion in liquidity at the end of September, and “we look forward to our next major milestone, which is production of Gravity and beyond that in 2025.”

Price cuts could stimulate demand to help Lucid meet its annual goals, but how much headroom will Lucid have on margins? The company's fourth-quarter and fiscal year 2023 results early next year will reveal It will be.

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