Al Root

Lucid stock fell despite reporting solid delivery results. There are more than just deliveries to worry about.

For the first quarter, the electric-vehicle maker delivered 3,109 cars, the highest quarterly total in the company's history and in line with Wall Street estimates.

Lucid stock, however, was down 5.8% in premarket trading at $2.26 a share, while S&P 500 and Dow Jones Industrial Average futures tumbled 3.4% and 2.7%, respectively.

The stock market is falling because President Donald Trump's tariff announcement was worse than feared. He's implementing a 10% base rate of tariffs on imports to the U.S., reciprocal tariffs on countries that have tariffs on U.S. goods, and 25% tariffs on imported cars and car parts.

Tech stocks were getting hammered early. Apple shares were down 7.4% in premarket trading.

Lucid makes the cars it sells in the U.S. domestically, but it imports some parts.

Along with market woes, Lucid late Wednesday guided first-quarter sales to about $234 million. Wall Street was looking for closer to $250 million. In-line delivery and lower sales point to weaker pricing or a mix of vehicles sold.

Lucid announced it was raising $1 billion in convertible debt. Capital raises also can lower company shares. At the end of the first quarter, Lucid had about $5.7 billion in total liquidity. Wall Street expects the company to use about $3.5 billion in 2025.

What's next for investors are earnings and the start of Gravity sales.

Gravity is the company's next model, a luxury SUV. The SUV market is larger than that of sedans such as the Lucid Air.

Deliveries should start near the end of April. Earnings from Lucid are scheduled for May 6.

Coming into Thursday, Lucid stock has fallen 21% this year. Shares dropped 14% after the company reported fourth-quarter earnings in February. Results were satisfactory, but a management transition might have spooked investors. Founder Peter Rawlinson stepped aside, and Marc Winterhoff was appointed CEO.

Write to Al Root at allen.root@dowjones.com

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April 03, 2025 07:22 ET (11:22 GMT)

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