Lucid Group price crashed 8.37 per cent to $22.01 on Nasdaq on Tuesday, October 7 after the company after missing Wall Street expectations in quarterly deliverables.
Electric vehicle manufacturer has surged 30.26 per cent over the past month, outperforming the Auto-Tires-Trucks sector’s rise of 18.68 per cent and the S&P 500’s gain of 4.06 per cent.
Lucid Group quarterly deliverables
on Monday reported a 46.6 per cent increase in third-quarter deliveries, fueled by a surge in electric vehicle demand ahead of the expiry of lucrative tax credits last week. However, the figures still fell short of Wall Street estimates.
The EV maker, along with its competitors, is preparing for a steep decline in sales during the final quarter of the year without the $7,500 credit. While some companies have slashed prices or devised ways to extend credit benefits, others have scaled back production in anticipation of weaker demand.
In August, Lucid cut its annual production outlook and now projects output in the range of 18,000 to 20,000 vehicles for the year.
The EV sector has long been struggling with steep import duties on vehicles and auto components entering the U.S.
Although Lucid manufactures its cars domestically, it sources certain parts from overseas. While its vehicles were ineligible for tax credits on direct purchases, the company leveraged those credits to provide appealing lease options.
Lucid delivered 4,078 vehicles during the quarter, slightly below the average analyst estimate of 4,286 deliveries projected by seven analysts, Visible Alpha was quoted as saying by Reuters. This marks an increase from the 2,781 vehicles handed over in the same period last year.
Meanwhile, EV leader Tesla reported record quarterly deliveries on Thursday, and Rivian also surpassed sales expectations as buyers accelerated purchases ahead of the September 30 incentive deadline.
(With inputs from Reuters)
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