It is described as Tesla-Killer, Lucid Scrambles to stay on the Nasdaq Stock Exchange

Electrical vehicle company besieged Lucid engines (LCID) He implemented the division of reverse shares, unified shares to meet the NASDAQ trading price of $ 1 and prevent deletion.

As of Friday, the Lucid share price fell by more than 96 % of its highest level ever at $ 64.86, which was reached in February 2021.

Although this step may protect the company from removing it from exchange at the present time, it only does a little to address the basic problems suffering from the troubled electric car maker.

Founded in 2014 by previous Tesla (Tesla) Engineer Peter Rolinson, clearly aimed at competing in the luxury EV category with a leading sedan Air, which is placed as a distinguished competitor for the Tesla S.

She had ambitious production goals, initially aimed at 20,000 vehicles in 2022, then 49,000 in 2023, and 90,000 in 2024. But the company struggled to meet the demand and in 2024, Lucid submitted slightly more than 10200 vehicles.

The company’s financial statements shed light on its challenges, as revenues increased by 36 % to $ 808 million in 2024, but net losses can accommodate $ 3.1 billion. This is a loss of about $ 299,000 per vehicle.

Lucid was trying to stay in the game

The multiple price cuts of the Air car from about $ 80,000 to approximately $ 71,400 reflects the ongoing efforts to remain competitive, but the company has a limited space to increase prices due to the high manufacturing costs.

Despite the existence of abundant liquidity of about $ 4.8 billion and the expansion of manufacturing facilities in Arizona and the Kingdom of Saudi Arabia, Lucid growth prospects are still unconfirmed. Facing the company Severe competition from Tesla and other auto industry companiesAnd its late launch of the most reasonable four -wheel drive vehicles, a possible change of the game, has not yet been achieved.

Analysts expect modest growth in the short term, as the revenues of 2025 are expected to reach $ 1.3 billion, with an increase of 61 %, and the losses are expected to decrease slightly.

However, even optimistic expectations put the maximum LUCID market in only $ 6.4 billion, or nearly five times its expected sales 2025. In contrast, the evaluation of Tesla remains more than $ 1 trillion, with a price ratio to the Bess about 12.

If Lucid is able to provide its own growth plans, the arrow has the ability to double or three times, if it achieves a similar evaluation of Tesla. Currently, the division of reverse stocks provides a temporary postponement, but investors must think carefully about looking at the flying financial statements of the company and intense competition.

Will Lucid have a market for a long time?

Lucid Motors shares had a harsh week, reflecting a broader investor’s concerns about the future demand for electric cars (EVS) and comprehensive market morale. The arrows of the luxury EV maker decreased sharply After highlighting analysts The ongoing challenges in the industry, including increasing competition, high production costs and consumer high interest.

Despite the previous excitement about the technological innovations of Lucid and its plans to expand the luxury squad, recent profit reports and market data indicate that the company may face a more challenging environment than expected previously.

Continuous supply chain disorders, along with doubts about EV adoption rates, weigh the investor’s confidence.

For investors, the last Lucid, which has now reflected all its recent gains, warns the signals between shareholders in the volatile EV sector.

Since car manufacturers are competing strongly for the market share, especially in the Premier League, the future Lucid profit remains under careful scrutiny.