In a significant moment for the electric vehicle (EV) industry, Lucid Motors (NASDAQ: LCID) became a publicly listed company in July 2021, raising $4.6 million through its initial public offering (IPO).
The company opened its first trading day, July 26, 2021, at $25.24, but it closed slightly down at $23.72 apiece.
Despite the minor dip, Lucid attracted strong investor interest at the IPO, which gained further traction in the coming months. In November 2021, the automaker saw an all-time high on the Nasdaq stock exchange of $57.75 per share.
However, the stock embarked on a sharp downward trajectory, losing a significant amount of its value since going public.
LCID down 80% since the IPO
At press time on September 28, 2023, LCID shares are trading at $5.46 apiece. This is nearly 80% lower than its July 2021 IPO price and more than 90% down compared to its November 2021 peak.
The EV stock gained more than 2.8% in Wednesday trading and over 2% across the past week.
On a monthly basis, however, LCID plummeted over 10%, losing around $1.3 billion in market cap, according to TradingView data. The automaker is also down around 21.5% year-to-date.
Why is Lucid down in 2023?
LCID’s shares continued tumbling in 2023 due to a combination of factors, primarily notably disappointing earnings and production reports.
The company said its Q2 production dropped significantly from the previous 3 months while deliveries stayed flat amid pressures from supply chain constraints and an EV market pricing war started by industry leader Tesla (NASDAQ: TSLA).
Earlier this week, the stock crashed to an all-time low of below $5. Analysts attributed the stock’s recent declines to the company’s decision to leave its comfort zone by eyeing a move to China, high starting EV prices, and a niche market segment.
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