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Tuesday, June 6, 2023

Lucid Group, Inc. (LCID) Stock on a Decline in Aftermarket, Here’s Why

Lucid Group, Inc. (LCID), a technology and automotive company have declined 6.08% in aftermarket trading session. Consequently, LCID stock is trading at $42 at the time of the writing. The slide could be attributed to the ongoing investigations against the company. On Wednesday, LCID closed the day at $44.72 after gaining an increase of 1.91% during the regular trading session.

Why LCID Sliding?

A couple of days ago, numerous law firms started investigating the alleged violations of federal securities law by LCID. On December 6th, the company disclosed that earlier in the month, it received a subpoena from SEC which requested the production of some of the documents which were related to an investigation being carried out by the SEC. The investigation seems to cause concern to the business combination between Lucid and Atieva Inc. As the news came out, LCID stock price started following a downward trajectory.

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Q3 2021 Operational Results

On 15th November, LCID released the operational results for the third quarter of the fiscal year 2021. The quarter ended on 30th September. The company generated revenue of $232,000 during the quarter against $334,000 during the same period of 2020. The total operating expenses for the period were $493.9 million against $161.8 million for the same period of 2020. The net loss suffered by the company during the period was $524.4 million against $161.2 million for the same period of 2020. The net loss per basic and diluted share for the third quarter stood at $0.43 against $6.64 for the same quarter of 2020.

Executive Commentary

Peter Rawlinson, CEO & CTO of LCID, while commenting on the results said that the company is quite excited about the accomplishments it has been involved in during the quarter. He said that the company looks forward to ramping up the production of its Grand Touring, Touring, and Pure models. Besides, the company would also look to expand its footprint internationally.

Future Outlook for LCID

During the last three months, LCID stock has surged by more than 125%. But during more recent days, the stock has mostly been in hot waters. Analysts, however, believe that the stock is in a good shape to attract potential investors in the upcoming future.

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