Most shareholders of Lucid Motors (NASDAQ: LCID) would have had a hard time foreseeing their stocks being traded for less than $5.0 per share, but this was exactly what happened on September 25, as Lucid stocks reached an all-time low price.
LCID changed hands for as low as $4.97 per share, quickly bouncing back over the round price support of $5.0 per share and this movement was celebrated by the stock analyst, Gurgavin Chandhoke (@gurgavin) on X (formerly Twitter), who predicted this price target in August 2022.
Notably, Gurgavin predicted the $5 per share with Lucid stocks being traded at $18 per share, which was enough to raise criticism against the analyst that has been proven right at this week’s opening.
Why has Lucid Motors reached an all-time low price?
Some analysts blame the current downtrend on Lucid Motors leaving its comfort zone by moving to China — which will demand more investments in an uncertain market still highly dominated by Tesla Inc. (NASDAQ: TSLA).
Ben Kallo, Baird’s Senior Research Analyst covering Sustainable Energy and Mobility, had already warned investors about the massive challenges faced by LCID due to: “High starting prices and a niche-market segment.”
“Profitably ramping EV production has proven to be a difficult task that has already challenged [Lucid] in its short operating history. Component shortages and supply-chain tensions have led to [Lucid] reducing its vehicle production guidance multiple times and could adversely impact results yet again.”— Ben Kallo on Lucid Motors
LCID price analysis
Meanwhile, LCID is trading at $5.33 by press time, with meaningful 3.8% gains in the day, as the stock recovered from yesterday’s all-time low.
However, Lucid Motors stocks lost 70% of their value per share since Gugarvin’s bearish prediction. Moreover, LCID also accumulated over 64% losses year-to-date since registering $14.81 per share in September 2022.
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