Lucid Group Stock Under Pressure After Recent Developments Lucid Group Stock Under Pressure After Recent Developments

By: Alex Freidmen

Lucid Group, Inc. LCID shares are trading lower Friday, and the stock is down nearly 20% over the past five days.

Issues with Model Air Sedans

Lucid is recalling more than 2,000 of its model Air 2022 and 2023 luxury electric sedans due to potentially faulty high voltage coolant heaters (HVCH), responsible for supplying warm air to heating and defrosting systems.

“If an HVCH fails, coolant cannot be heated and the windshield cannot be defrosted. Loss of adequate windshield defrost capability could lead to restricted driver field of vision and an increased risk of a crash,” Lucid said in the recall report filed with the National Highway Traffic Safety Administration on Jan. 10.

Lucid announced its fourth-quarter and 2023 vehicle production and delivery figures on Thursday. The company produced 2,391 vehicles in the fourth-quarter and delivered 1,734 vehicles during the same period. It produced 8,428 vehicles and delivered 6,001 vehicles for the full-year period of 2023.

Lucid is set to announce its fourth-quarter 2023 financial results after the market close on Feb. 21 and will host a conference call at 5:30 p.m. ET the same day. According to estimates from Benzinga Pro, Lucid is expected to report a loss of 30 cents per share and quarterly revenue of $192.629 million.

LCID Price Action: According to data from Benzinga Pro, Lucid shares are down 7.2% at $3.02 at the time of publication.

Image: Lucid Photo by Mike Mareen on Shutterstock

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