Lucid Group (NASDAQ:LCID), the electric vehicle manufacturer, has seen its shares fall to about $5 from the initial price of $25.24 since its market debut via a SPAC. The company's failure to meet its production goals for 2022 and 2023 has caused investor concern, despite significant expansion efforts and a robust liquidity position.
CEO Peter Rawlinson, who received a $379 million compensation package, recently announced the opening of Lucid's first overseas plant, AMP-2, in King Abdullah Economic City (KAEC), Saudi Arabia. The Saudi Public Investment Fund, which owns over 60% of Lucid's shares, backs the new plant.
In addition to its international expansion, Lucid launched the Gravity SUV model from its Arizona plant (AMP-1). However, poor sales led the company to cut prices for all Air sedan models. Despite these efforts and a total liquidity of $6.25 billion, Lucid's performance in the market has been underwhelming.
Currently trading at 13 times this year's sales, Lucid is projected to make $794 million in sales in 2023 while suffering a net loss of $3.07 billion. This performance contrasts with competitors like Tesla (NASDAQ:TSLA) and Rivian (NASDAQ:RIVN) Polestar (NASDAQ:PSNY), adding to investor concerns about Lucid's future prospects.
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