For all people and businesses that bought or otherwise acquired Lucid Motors (NASDAQ: LCID) common stock between November 15, 2021, and February 28, 2022, a federal securities class action complaint has been filed in the United States District Court for the Northern District of California (the “Class Period”).
Indeed, Wolf Haldenstein Adler Freeman & Herz LLP reminded all investors who purchased the shares of Lucid and incurred losses to contact them in an announcement made on May 6, reports PRNewswire.
The law firm seeks that the Court designates each investor as a lead plaintiff of the proposed class action against Lucid and Wolf Haldenstein states investors must file their motion no later than May 31, 2022.
The details behind the Lucid lawsuit
Lucid announced its plans to merge with Churchill Capital Corp. IV, a special purpose acquisition company (SPAC), back on February 22, 2021, prior to the commercial launch of the Lucid Air.
The transition allowed Lucid securities to be traded on the stock exchange and would provide it with $4.4 billion in capital. Defendants informed investors that Lucid would deliver 577 electric vehicles (EVs) in 2021, 20,000 EVs in 2022, and 49,000 in 2023 (including 12,000 of the Gravity SUV, which would launch that year) as the firm moved to become a publicly listed company.
After a successful commercial launch of the Lucid Air, Lucid reported its third quarterly results on November 15, 2021, marking the start of the company’s first fiscal quarter. A press statement issued by Lucid after the announcement of these results highlighted the company’s expansion potential, adding that Lucid “[c]ontinued to invest in the business, readying production and deliveries.”
Additionally, according to the press statement, Lucid had successfully begun manufacturing cars for customer deliveries, has continued investing in capacity growth at our manufacturing site in Arizona, and has created additional retail and service facilities in anticipation of the Lucid Air launch.
As part of its commitment to achieving 20,000 units by 2022, Lucid also announced:
“The expansion of [Lucid’s] manufacturing capacity,” which was “expected to provide production capacity for up to 90,000 vehicles per year by the end of 2023 by expanding Lucid Air.”
Lucid revealed no issues with supply chains
Defendants informed investors that supply chain concerns, which plagued other automakers, would not hinder Lucid’s ability to meet its production objectives. The company frequently told investors that Lucid’s manufacturing capacity was fast expanding and that Lucid would meet its production goals.
However, the facts surrounding Lucid’s manufacturing capacity came out on February 28, 2022, when the company said it had delivered roughly 125 electric vehicles in 2021, and had manufactured approximately 400 by February 28, 2022 (falling short of its 577-vehicle goal for 2021), and would build between 12,000 and 14,000 EVs by the end of the year (falling short of its 20,000-vehicle target).
During Lucid’s quarterly earnings call that same day, On the same day, Lucid disclosed that the Lucid Gravity launch would have to be postponed until 2024. (versus a prior launch date in 2023).
Despite previously claiming to be free of supply chain concerns, Lucid blamed their reduced production forecast on “the extraordinary supply chain and logistics challenges [Lucid] encountered.”
Following this announcement, Lucid common stock dropped $3.99 per share, or 13%, from a close of $28.98 on February 28, 2022, to a close of $24.99 on March 1, 2022.
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