What occurred
With electric car (EV) stocks obtaining hammered on Friday, Lucid stock today (LCID -4.15%) couldn’t leave the market’s wrath either– shares of the EV start-up were trading down 5.8% since 1:30 p.m. ET.

Lucid announced some development plans, but the market was paying higher focus to an opponent’s just-released revenues report as well as some of the important things it stated.

So what
Earlier in March, Lucid introduced it’ll generate just 12,000 to 14,000 cars and trucks in 2022 versus its previous forecast of 20,000 units, offered the supply chain as well as logistics obstacles. Today, a minimum of 2 car manufacturers confirmed that the supply concerns aren’t vanishing anytime soon.

A stressed person in a mask examining a falling stock cost chart on a computer screen.

China-based Nio, which is also targeting the luxury EV market like Lucid, simply introduced weak assistance for deliveries in the first quarter due to supply chain obstacles and also other headwinds. Nio additionally didn’t dismiss the possibility of price increases in the near future if prices remain to climb. This mirrors Lucid’s sentiment– hardly days earlier, Lucid mentioned inflationary pressure as well as claimed it’s checking into raising prices of its EVs in the near future, according to Reuters.

Meanwhile, legacy automaker General Motors is closing down a factory in Indiana for 2 weeks since it’s running out of semiconductor chips.

These updates seem to have made investors in Lucid anxious about whether the company will also have the ability to generate up to 14,000 vehicles offered the recurring crisis in the supply of raw material that could worsen if the Russia-Ukraine dispute escalates.

Now what
In the meantime, Lucid is concentrated on development. Adhering to Tesla’s playbook, Lucid is targeting direct sales to end customers through studios in prime retail areas as well as will open its 2nd showroom in Canada in March. The workshop is located in Canada’s premier shopping mall, Yorkdale, in Toronto.

Notably, Lucid confirmed it will begin distributions in Canada this spring, its first market outside the united state Lucid has likewise thought of an engaging offer to draw clients in Canada– those that book a Lucid Air by June 30 will get two years of free of charge charging throughout Electrify Canada’s public EV charging network thanks to Lucid’s tie-up with the company. Electrify Canada presently has 30 stations with 120 chargers and is targeting greater than 100 terminals by 2026.

Increase
NASDAQ: LCID
Lucid Team, Inc

Today’s Adjustment (-4.15%) -$ 1.09.
Current Rate.
$ 25.16.
On the other hand, while Lucid is still attempting to construct a client base in North America, matches Tesla and Nio are currently expanding rapidly into Europe. With Tesla likewise opening a Gigafactory in Berlin this week, Lucid will have to function harder to grow while maintaining a check on prices. Financiers aren’t certain if that’s feasible now, as well as their fears are shown in Lucid stock’s fall today.

Why Lucid Stock Tumbled and could not escape the market