For those who first parked Lucid (NASDAQ: LCID) stock in their portfolios in April, watching the stock rip higher has been exciting. Over the past three months, shares of Lucid have skyrocketed more than 50%, leaving the S&P 500 and its rise of 10% in the dust.
However, investors who chose to invest in Lucid stock from its debut on the public markets have experienced a ride plagued by potholes. Let's look at what has driven investor sentiment for this luxury EV maker over the past few years.
Lucid stock has ridden a rocky road since 2021
After completing its SPAC merger, Lucid stock began trading under its ticker "LCID" on July 26, 2021 -- a day that saw it open at $25.24 and climb as high as $29.03 before closing at $26.83. Supercharged in the months that followed, Lucid stock soared as high as $56.70 during the trading session on Nov. 30, 2021. Since then, however, it has been a steady road downhill, and shares have failed to rise as high as $5, a threshold that they sank below on Oct. 17, 2023. Those who invested $10,000, consequently, on July 26, 2021 at the open are left with about $1,430 of their original investments as of July 15, 2024.
While Lucid has progressed in some ways, investors have largely been disappointed with the company's growth in production volume. After producing 7,180 vehicles in 2022, management forecast 2023 vehicle production volume of 10,000 to 14,000, but the company fell short of expectations and only produced 8,428 vehicles.
Is it better to watch Lucid's story play out from the side of the road?
For those interested in Lucid stock, there's no categorical answer as to whether now is the right time to buy. Although it has been trending higher recently, it's important to remember that the company is far from profitable, reporting a net loss of $2.8 billion in 2023. Consequently, only EV stock enthusiasts with an ample risk tolerance should consider Lucid at this point.
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
