Presented as the Tesla-Killer, Lucid rushes to stay on the Nasdaq

The Société de Vehicles Assieged, Lucid Motors (LCID), has implemented a distribution of inverted shares, consolidating the shares to respond to the minimum negotiation price of $ 1 of NASDAQ and avoid cancellation.

Friday, Lucid’s share price fell by more than 96% compared to its $ 64.86 summit, reached in February 2021.

Although this decision can protect the company from the exchange for the moment, it does not do much to solve the underlying problems which afflict the manufacturer of electric vehicles in difficulty.

Founded in 2014 by the former engineer of Tesla (TSLA), Peter Rawlinson, Lucid initially aimed to participate in the luxury electric vehicle segment with his flagship aerial sedan, positioned as a high -end rival of the S. de Tesla’s S.

He had ambitious production objectives, initially targeting 20,000 vehicles in 2022, then 49,000 in 2023 and 90,000 in 2024. But the company had trouble meeting demand and in 2024, Lucid delivered just over 10,200 vehicles.

The finance of the company highlights the extent of its challenges, the revenues increasing by $ 36% by $ 808 million in 2024, but the net losses widen to $ 3.1 billion. It is a loss of around $ 299,000 per vehicle sold.

Lucid tried to stay in the game

Multiple price reductions for the aerial sedan of around $ 80,000 to around $ 71,400 reflect continuous efforts to remain competitive, but the company has limited price increases due to high manufacturing costs.

Despite sufficient liquidity of around $ 4.8 billion and an expansion of manufacturing facilities in Arizona and Saudi Arabia, Lucid’s growth prospects remain uncertain. The company faces strong competition from Tesla and other car manufacturers, and its delayed launch of the more affordable gravity SUV, a potential changer of the situation, has not yet materialized.

Analysts provide for a modest short -term growth, revenues of 2025 should reach $ 1.3 billion, with an increase of 61% and losses that should decrease slightly.

However, even optimistic forecasts place Lucid’s market capitalization at only $ 6.4 billion, about five times its sales scheduled in 2025. On the other hand, Tesla’s assessment remains greater than 1 billion of dollars, with a price / sales ratio of around 12.

If Lucid can manage its growth plans, the stock has the potential to double or triple, if it obtains an assessment comparable to that of Tesla. For the moment, the split of inverted shares provides a temporary stay, but investors should carefully think of it given the volatile finances of the company and solid competition.

Will Lucid have a market for a long time?

Lucid Motors’ shares had a difficult week, reflecting wider concerns for investors concerning the future demand for electric vehicles (VE) and the overall feeling of the market. Luxury EV Maker’s actions fell sharply after analysts highlighted continuous industry challenges, including increased competition, increased production costs and moderation in consumer interests.

Despite earlier excitement around Lucid’s technological innovations and plans to extend its luxury range, recent profits and market data suggests that the company could be confronted with a more difficult than expected environment.

The persistent disturbances of the supply chain, combined with skepticism on the adoption rates of the EV, assess the confidence of investors.

For investors, the recent drop in Lucid, which has now reversed almost all of its recent earnings, signals have increased the prudence of shareholders in a fluctuating EV sector.

While car manufacturers fiercely compete with the market share, especially in the premium segment, the future profitability of Lucid remains narrow.