This year, it appears that the luxury electric vehicle (EV) maker Lucid Motors (NASDAQ: LCID) can’t get a break from a deluge of bad news and unfavorable developments.
The EV maker’s extensive business struggles are also well reflected on the stock market as the company’s shares are down as much as 53.39% since the time it conducted its initial public offering (IPO).
Now, Lucid received yet another hit as Sherry House, the EV maker’s chief financial officer (CFO), handed in her resignation on December 11, 2023, according to an official announcement. While the resignation is effective immediately, the company stated that the former CFO will be available in an advisory role until December 31, 2023 – for another two weeks at the time of publication.
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Reportedly, House’s departure from the company is the result of the former CFO’s desire to pursue other, unspecified opportunities. Commenting on her departure and on Lucid, she stated:
“I am confident in Lucid’s future and grateful to have had the opportunity to contribute to its success to-date. There is so much exciting innovation happening at Lucid, and I look forward to watching the company continue to grow and achieve new milestones. It was an honor to work with Peter and the Lucid team.”
Investors quickly reacted to the news, and Lucid’s shares are down approximately 2% in the pre-market.
A deluge of bad news for Lucid
While the exact extent of influence recent developments have had on Ms. House’s decision to resign remains entirely speculative, it is clear that the company has been having an exceptionally bad year.
The overall slowdown in demand for EVs has been one of the main factors in the carmakers’ decline, which has already attempted to offset the unfavorable market conditions by implementing generous cashback on the purchase of new vehicles.
Despite these efforts, Lucid was forced to reduce its expectations for the number of vehicles that are to be delivered this year in its latest quarterly report. Additionally, the string of setbacks and the effects they had on the company’s stock led to its removal from the prestigious Nasdaq 100 index.
Considering the many developments that affected Lucid throughout 2023 and the inevitable selling pressure stemming from Nasdaq’s decision, it remains unclear whether Lucid has a future other than completely collapsing as a company.
Still, Lucid’s demise is far from guaranteed as the company has experienced some recovery on the stock market in recent weeks, and neither the resignation of the CFO nor the removal from Nasdaq 100 spells certain doom, as is highlighted by the success Tesla (NASDAQ: TSLA) – one of Lucid’s biggest competitors – has achieved despite itself being removed from the index in 2010.
LCID stock price analysis
As could be expected based on the pressure Lucid has been under in 2023, its stock has been on a near-constant decline throughout the year. The company’s shares are down 25.28% compared to where they stood on January 1. They have declined a further 2.54% in Monday trading and stood at $4.61 at the latest close.
Despite the overall downtrend, LCID did experience a rally of 16.12% in the last 30 days, but it should be noted that many other companies broadly fitting into the technology sector have also been rising recently, likely due to the FED’s decision announced on November 1 not to increase interest rates.
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