Lucid Group Inc (LCID) shares plunged 5.10% in Tuesday's trading session, continuing the electric vehicle maker's downward trend. This latest drop comes on the heels of a dismal first quarter performance in 2025, where the stock fell 19.9%, significantly underperforming both the Nasdaq Composite and S&P 500 indexes.

The company's recent struggles can be attributed to several factors. Foremost among these is the unexpected leadership transition. CEO Peter Rawlinson abruptly resigned, with Marc Winterhoff stepping in as interim CEO while the company searches for a permanent replacement. This management shake-up, coupled with the appointment of a new CFO, has raised concerns among investors about the company's stability and future direction.

Adding to investor worries are Lucid's production and financial challenges. While the company delivered a record 3,109 vehicles in Q1 2025, it only produced 2,212 units during the same period. This production rate casts doubt on Lucid's ability to meet its ambitious goal of 20,000 units for the year. Furthermore, despite projecting 35% year-over-year revenue growth, Lucid's Q1 revenue estimates of $232 million to $236 million fall short of analyst expectations.

External factors are also weighing heavily on Lucid's stock. The Trump administration's freeze on clean energy program funds, including those for electric vehicles, has created uncertainty in the EV market. Additionally, potential tariffs could further increase costs for U.S. automakers like Lucid. With the company already grappling with a net loss of $3.1 billion in 2024 and a recent $1 billion convertible debt offering, these external pressures only add to the challenges facing the EV manufacturer.