Lucid Group Inc (LCID) shares plummeted 5.10% in Tuesday's trading session, continuing the electric vehicle maker's struggles in 2025. The sharp decline comes as the company faces multiple headwinds, including leadership changes, production challenges, and potential policy impacts from the Trump administration.
Lucid recently announced preliminary results for Q1 2025, which fell short of analysts' expectations. Despite delivering a record 3,109 vehicles, the company's projected revenue range of $232 million to $236 million disappointed investors. Moreover, Lucid produced only 2,212 vehicles in Q1, raising concerns about its ability to meet its 2025 production target of 20,000 units.
Adding to investor worries, Lucid is undergoing a significant leadership transition. CEO Peter Rawlinson's abrupt departure and replacement by interim CEO Marc Winterhoff has created uncertainty about the company's future direction. Furthermore, the announcement of a $1 billion convertible debt offering has sparked fears of potential shareholder dilution. The broader context of tariffs potentially increasing costs for U.S. automakers and the Trump administration's opposition to clean energy initiatives are additional factors weighing on Lucid's stock performance.
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