Lucid Motors (NASDAQ: LCID) is facing a challenging year marked by disappointing stock market performance attributed to sluggish sales and delivery issues.
On October 9, the electric vehicle (EV) manufacturer’s shares plunged to an all-time low of $4.87, before briefly recovering to close at $5.03, representing a decline of nearly 2% for the day.
Why is Lucid stock falling again?
Lucid’s slump to a fresh record low comes just days before the company’s expected Q3 2023 delivery report, according to investor Sawyer Merritt. This indicates that the latest share price dip could be because investors are attempting to cover potential losses in case of a poor delivery report.
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In fact, the EV maker’s disappointing performance in 2023 comes mainly due to weak demand for its cars.
In August, Lucid reported that its Q2 revenue missed analysts’ expectations after delivering less-than-expected Air luxury sedans during that period.
In particular, the company delivered 1,404 Air sedans in the second quarter, roughly 600 fewer than analysts on Wall Street anticipated.
In the meantime, Lucid has also witnessed a backlash from investors and other EV market watchers after its CEO, Peter Rawlinson, received an annual compensation package of a staggering $379 million.
That figure is over half of Lucid’s total revenue for 2022, making Rawlinson by far the highest-paid executive in the EV industry.
Lucid stock price analysis
At press time on October 10, LCID was sitting at $5.03, down 1.95% in the past 24 hours.
Over the past week, LCID fell more than 8% and over 16% on the month, losing almost $2 billion in market value during that period, according to TradingView data.
Year-to-date, LCID is down more than 27%, making it one of the worst-performing major EV stocks.
Last week, the company rolled out a more affordable version of the Air sedan as it struggles to drive sales.
It said it would launch a single-motor, rear-wheel-drive version of its Air Pure sedan, starting at $77,400, around $5,000 cheaper than its previous cheapest all-wheel-drive Air Pure.
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