Lucid Continues to Fall Apart – Darlinez News.

Lucid Group Inc. (NASDAQ: LCID) continues to show why it is stuck in the backwater of the electric vehicle (EV) industry. It produced 3,493 vehicles in the fourth quarter but delivered only 1,932. The difference between the two figures speaks to management’s deep problems and the vast effort that will have to be made to get Lucid to the point where it is a viable manufacturer. (See if Lucid is one of the least reliable cars in America.)

Lucid’s announcement was made without comments from management. They had a chance to explain the problem. An explanation would have at least given shareholders something to cling to.

The company’s third-quarter results were a train wreck. It lost $688 million on revenue of $195 million. While Lucid recently raised $1.5 billion, it is still not clear it has enough money to become profitable.

Lucid’s business model is based on the outrageous belief that a moderate market exists for a $180,000 EV. Not only is there no proof of this, but every major car company in the world has announced EV models. Added together, these models number in the dozens. Several manufacturers, including BMW and Mercedes, are aimed at the high end of the market. Each large car company has iron-clad balance sheets, huge production facilities and world-class product development and marketing operations with decades of experience.

Lucid is alone on an island. It cannot make it to dry land in terms of products or profits.

Lucid’s stock price is indicative of its problems. It is off 82% in the past year. Lucid has been abandoned as a viable car company, particularly as almost the entire auto industry moves into EVs.