On Tuesday, Lucid stock opened higher, trading as high as $8.96 a share, but gains could not be maintained. During noon trading, the price of Lucid stock decreased by 0.3%.
Electric car start-up In preparation for the growth of its product line, Lucid is working to secure supplies of batteries for electric vehicles. However, the stock’s situation has remained the same. It’s possible that Tesla is to blame.
On Tuesday, Lucid Group Inc (NASDAQ:LCID) announced that Panasonic (6752.Japan) would be the supplier of electric car batteries for the company’s entire lineup of electric vehicles. The batteries will be produced in facilities located in Japan in addition to a brand new plant that will be constructed in De Soto, Kansas.
In a press release, Lucid’s Chief Executive Officer Peter Rawlinson referred to Panasonic as a “great partner” due to the company’s “innovative technology” and “depth of knowledge.” As we continue ramping up manufacturing of the entire Lucid Air lineup in 2023 and anticipate beginning production of our Gravity SUV in 2024, this arrangement will assist us in meeting the increased demand for lithium-ion batteries.
The unveiling of the Gravity is scheduled for the year 2023. It will be a premium product similar to the Lucid Air sedan, and buyers of automobiles should expect to pay something in the neighborhood of $100,000 for it. The prices have yet to be finalized and made public.
On Tuesday, LCID stock opened higher, trading as high as $8.96 a share, but gains could not be maintained. During noon trading, the price of the stock decreased by 0.3%.
The arrangement with Panasonic was helpful; the supply of batteries is essential for any manufacturer of electric vehicles. More prominent automobile manufacturers are investing in their battery capacity to help drive down prices. Still, Lucid cannot afford to do so at this time in the company’s existence.
The data on inflation should have been beneficial to Lucid stock as well. The statistics for the U.S. consumer price index for November came in lower than predicted, which was positive for most shares. Both the S&P 500 (SPX +0.63%) and the Dow Jones Industrial Average (DJIA +0.17%) are showing gains, with the former showing approximately 1.8% and the last 1%.
It’s possible that Tesla is to blame for today’s decline in LCID stock price. The price of a single Tesla share has decreased by more than 2% and is currently trading at approximately $164. Tesla is the most valuable automobile manufacturer on the planet and the most valued manufacturer of electric vehicles. Tesla’s performance can impact the worth of other electric vehicle manufacturers.
The current price of Tesla shares is 29 times the company’s expected earnings for 2023. However, Lucid is yet to be profitable. Its stock trades almost five times what the company brings in each year. Tesla trades at a similar multiple of sales.
Lucid Stock Went Down
The price of LCID stock has been down almost 78% since the beginning of this year. The price of Tesla shares has fallen by nearly 53 percent.
As a result of the combined effects of inflation and increased loan rates, most vehicle stocks have experienced a loss of between 20 and 30 percent this year. About that much was lost in value for Tesla stock up until CEO Elon Musk finished the acquisition of Twitter. As a result of the production issues that Lucid has been experiencing in 2022, the company’s delivery projection has been reduced from around 13,000 vehicles to 6,500 vehicles for the entirety of 2022.
Featured Image: Megapixl @ Iandewarphotography
