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Low demand prompts Lucid to offer $10,000 cashback on car purchases

Low demand prompts Lucid to offer $10,000 cashback on car purchases

The luxury EV maker Lucid Motors (NASDAQ: LCID) has been experiencing significant setbacks throughout 2023. Its Q3 delivery report was not only late but also failed to meet expectations, and its stock price is down 34.36% year-to-date.

On November 2, the well-known event-driven trader known as Gurgavin Chanhoke shared on X that Lucid is now offering a $10,000 cashback on vehicle purchases. According to the post, the main reason behind this decision is allegedly a severe lack of demand for the luxury EV maker’s models.

While the offer is enticing on the surface, questions remain of whether it will affect the overall interest in the company as Lucid’s least expensive models still carry a price tag of over $70,000.

The news is hardly surprising considering that Lucid has been struggling to meet its own delivery goals, as well as analyst expectations throughout the year. In fact, it was estimated back in October that Tesla Inc. (NASDAQ: TSLA) is delivering on average the same number of vehicles in 8 hours as Lucid is in an entire quarter.

Lucid struggling with vehicle deliveries

While overall interest in green energy has been high in recent years, and despite Lucid’s 100,000-vehicle deal with Saudi Arabia, the EV maker has so far failed to find its footing. In multiple quarters over the previous two years, the company has been making fewer than 2,000 deliveries of its Air Sedans.

The third quarter of 2023 proved a particular disappointment for Lucid’s investors and supporters. Not only was the report late compared to previous similar releases, but the number of Air Sedans delivered was revealed to be 1,457 – significantly fewer than the 2,275 many analysts expected.

Lucid’s ambitious goals, as well as its continuous failure to deliver the expected numbers of vehicles, are only further compounded by the broader market trends. Despite this, the potential for recovery remains as the EV-maker’s cars, while expensive, have been reviewing fairly well. 

The company has also broken some records over the years with its technology. For example, Lucid Air, its debut vehicle, had a range of 517 miles beating all of Tesla’s models.

Lucid price analysis

Much like Lucid has been facing problems on the demand and delivery side of things, its shares have been performing poorly on the stock market

The EV maker’s stock closed at only $4.05, meaning it declined 1.70% on November 1. Since the start of 2023, the firm is down 34.36% and is 59.65% below its all-time high of $58.05.

LCID 1-day price chart. Source: Finbold

Lucid’s market cap is also dwindling with its stock price and stands at only $9.24 billion at the time of publication. This means it is approximately 70 times smaller than its best-known competitor – Tesla.

Some of the projections for the company’s future are similarly bleak. An AI forecast for 2025 covered by Finbold in October estimates that Lucid’s stock will not rise above $6.69 in 2024 and $10.26 in 2025. 

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