However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. Our research is based on sources that we believe to be reliable. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it.
Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing here in constitutes a recommendation respecting the particular security illustrated. Any trades shown are hypothetical example and do not represent actual trades. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Practical application of the products herein are at your own risk and, its partners, representatives and employees assume no responsibility or liability for any use or mis-use of the product. This product is for educational purposes only. The Lucid Group stock price has fallen 60.21% this year but appears to have bottomed.Disclaimer: Past performance is no guarantee of future performance. LCID shares are currently trading within a bottoming range that could fuel a rally higher if it is not broken. At the time, many were betting on Tesla going bankrupt as it invested heavily in its gigafactory.Ĭan Lucid shares recover? The short answer is yes. Tesla, the market leader, also faced significant challenges when expanding its manufacturing capacity in 2017-2018, when it increased the production of its Model 3 sedans. While demand for EVs continues to rise, EV manufacturers have found it challenging to meet the higher demand in a market where investors are increasingly growing impatient with unrofitable startups that are soending billions yet still making losses.Ĭompanies such as Lucid Group will reap significant benefits once their manufacturing capacity increases, which could make them profitable as most of their operating costs remain fixed. The EV company plans to raise its production target to 50 to 60 vehicles daily. Recnet news indicated that Lucid had increased its production capacity, with some sources indicating that it had boosted its daily vehicle production rate to 40-50 vehicles. The group had to lower its 2022 production forecast from 20,000 cars to just 6,500 cars, and even the lower estimates sound pretty optimistic, given that it would have to produce 5,000 cars in the year’s second half to meet the target. For example, Lucid Motors spent $1.5 billion from January to June this year, yet its Greenfield manufacturing plant produced 1,400 luxury saloon cars, which translates to 8 daily. However, many startups acknowledge that it is not easy to ramp up production.
EV startups such as Lucid Group are burning through significant cash reserves to scale up their production, especially since they are trying to build and operate vehicle manufacturing facilities instead of outsourcing their production.Īlso read: The Best Electric Car Stocks To Buy.
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