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LUCID PENNY STOCK STATUS ALMOST 2 YEARS OLD

pamela_d_mcadams / iStock via Getty Images
Douglas A. McIntyre
Published: September 17, 2024 6:40 am


24/7 Wall St. Insights

 * Lucid Group Inc. (NASDAQ: LCID) has been a penny stock for almost two years.
 * The stock has underperformed the broader market in that time.
 * Also: Dividend legends to hold forever.

Lucid Group Inc. (NASDAQ: LCID) has been a penny stock (under $5) for almost two
years, and it should never have traded above that. The stock of the deeply
troubled electric vehicle (EV) company was down approximately 10% this year,
while the S&P 500 was 18% higher. The share price is 77% lower in the past two
years, while the S&P 500 is up 45%.



Lucid has been unable to escape the fact that it is a tiny player in an industry
whose growth has unexpectedly slowed. It delivered only 2,394 vehicles in the
second quarter and expects to do no more than 9,000 this year. It has revenue of
only $200 million and a loss of $643 million, which adds to a long string of
quarters with red ink.

In an era when the race is to produce a $25,000 EV to lift the industry from its
doldrums, Lucid’s cars cost $80,000. They have unspectacular ranges of less than
400 miles on a single charge. An investment of $1.5 billion from the Public
Investment Fund of Saudi Arabia is not enough to sustain it.

Are These 3 EV Stocks Good to Invest in This Year?

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Read more: Investing, electric vehicles, Lucid stock

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