What Happened?
Shares of luxury electric car manufacturer Lucid (NASDAQ: LCID) jumped 3.8% in the afternoon session after a company executive reassured investors about its growth plans and financial stability as the stock hit a new all-time low.
Lucid's head of communications, Nick Twork, stated the company had a “strong liquidity runway,” which included a $2 billion credit facility from its majority owner, Saudi Arabia's Public Investment Fund (PIF), and another $2 billion in refinanced convertible notes. Twork also downplayed speculation that the PIF had plans to take the company private, emphasizing that the fund's interests were aligned with other shareholders. The comments came after the stock's price had fallen by over 60% since the beginning of 2025. On a positive note, the company expected its new electric SUV, the Gravity, to make up the majority of its production and deliveries in the fourth quarter.
After the initial pop the shares cooled down to $11.71, up 2.2% from previous close.
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What Is The Market Telling Us
Lucid’s shares are extremely volatile and have had 53 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock dropped 4.3% on the news that the company launched its first certified pre-owned vehicle program, "Lucid Recharged," but investor focus remained on broader financial concerns.
The new program aimed to offer customers more choice with manufacturer-backed standards. However, the announcement did not impress investors, who seemed more concerned with the electric vehicle maker's underlying financial health. The move followed a recent downgrade from Morgan Stanley to "Underweight," which cited worries that the company might not achieve profitability until 2028. Additionally, Lucid previously adjusted its 2025 production guidance downward.
Lucid is down 61.4% since the beginning of the year, and at $11.71 per share, it is trading 66.4% below its 52-week high of $34.80 from February 2025. Investors who bought $1,000 worth of Lucid’s shares 5 years ago would now be looking at an investment worth $117.40.
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