What Happened?
Shares of luxury electric car manufacturer Lucid (NASDAQ: LCID) fell 4.4% in the morning session after prominent market commentator Jim Cramer recommended investors sell the stock.
Cramer's bearish sentiment, which included a “sell, sell, sell” comment, came as the electric vehicle maker faced significant challenges. The company was burning through large amounts of cash, using over $950 million in the most recent quarter alone. Lucid also operated with negative gross margins, meaning it lost money on the cars it sold. These financial pressures existed alongside production setbacks and concerns about weakening demand for EVs.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Lucid? Access our full analysis report here.
What Is The Market Telling Us
Lucid’s shares are extremely volatile and have had 52 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 gained 3.8% on the news that 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.
Lucid is down 60.9% since the beginning of the year, and at $11.85 per share, it is trading 66% 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 $118.10.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free for active Edge members and will only take you a second.
