Lucid Group Inc (LCID) stock experienced a significant 5.3% plummet during the intraday trading session on Monday, January 13th, 2025. The decline comes amid growing concerns over the company's production challenges and uncertainty surrounding demand for its high-end electric vehicles (EVs).
One of the key factors contributing to the stock's downfall is Lucid's ongoing struggle to ramp up production and meet delivery targets. Despite reporting a 71% increase in deliveries for 2024, the company's production numbers remain relatively low compared to its competitors. With only 9,029 vehicles produced last year, Lucid faces challenges in achieving economies of scale and reducing its substantial losses.
Furthermore, the demand outlook for Lucid's luxury EVs, particularly the newly launched Gravity SUV, has raised concerns among investors. Priced at a premium range, starting at $94,900 for the Gravity, Lucid's vehicles target a niche market segment. As the broader EV market faces potential headwinds, questions arise about the company's ability to attract sufficient demand to sustain its growth ambitions.
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