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What’s going on with Lucid stock as LCID hits an all-time low?

What's going on with Lucid stock as LCID hits an all-time low?

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.

Lucid stock LCID 1-year price chart.
LCID 1-year price chart. Source: Finbold

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.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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