Amid a volatile macroeconomic scenario and soaring recessionary fears, the affordability of Electric Vehicles (EVs) has been somewhat affected. Against this backdrop, EV stock Lucid Group, Inc. (LCID), with mounting losses, could be avoided now. Let us delve deeper to find more.
LCID is a technology and automotive company that designs, engineers, and builds EVs, EV powertrains, and battery systems. The company’s production throughout 2022 was 7,180 vehicles. Of those vehicles, the company reportedly only delivered around 4,369 EVs. LCID set 2023 annual production targets of 10,000 to 14,000, which is roughly half of the 20,000 to 22,000 deliveries analysts had expected for the year.
LCID’s Chief Executive, Peter Rawlinson, explained that the early production struggles had prompted the company to cut production plans last year, which led some early reservation holders to cancel. Also, newly offered discounts by LCID for some vehicle configurations have further fed analyst worries about declining demand for the company’s vehicles.
Given its performance in the last quarter, investors seem to be bearish about the EV stock. The stock has plunged…
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