Latest news with #MarcWinterhoff
Yahoo
a day ago
- Automotive
- Yahoo
Should You Buy Lucid While It's Below $3?
After a surge of interest, consumer enthusiasm for electric vehicles has fallen of late. Lucid's EVs are expensive, which can make them a harder sell amid higher economic uncertainty. While the company makes great vehicles, it faces too many serious headwinds right now. 10 stocks we like better than Lucid Group › Lucid Group (NASDAQ: LCID) makes some of the best-looking electric vehicles in the U.S. They've won accolades from automotive publications, and offer some of the EV world's longest battery ranges. So you might assume the EV start-up would have a rapidly rising share price to boot. But that's not the case. Lucid's shares have plunged by 86% over the past three years, while the S&P 500 has gained 41%. With its shares trading for less than $3, is Lucid stock a buy now? The least expensive Lucid Air sedan has a starting price of about $70,000, and the only available version of its new Gravity SUV starts at nearly $95,000. That's 18% and 60% more expensive than the average transaction price for a new EV, respectively. Lucid's luxury EVs aren't necessarily for the average buyer, so one could argue that it's fine that they cost so much. The problem is that overall demand for EVs is slowing in the U.S. A recent survey found that only 16% of Americans are interested in buying an EV, down from 21% at this time last year. Their cost is likely a factor. Interest rates remain relatively high and President Trump's tariffs are adding to manufacturers' expenses. Lucid's interim CEO, Marc Winterhoff, said recently that the company's gross margin headwind from those tariffs will be in the range of 8% to 15%. That could eventually push its vehicle prices even higher. Part of the reason why demand for EVs has weakened is that charging infrastructure still is not ubiquitous across the U.S., and it will take years to build it out. President Trump is also hampering that process, as he has paused the distribution of $3 billion in funding that Congress allotted to the states to support their efforts to install more electric vehicle charging stations. Republicans are also trying to eliminate federal EV tax credits that were worth up to $7,500 for new electric vehicle purchases. The version of Trump's "One, Big, Beautiful Bill" that recently passed in the House axed the tax credit; its fate in the Senate is unclear. Lucid's vehicles are now too expensive to qualify for the credit, but the company compensated for that by cutting its sticker prices by $7,500. Automakers' management teams often make decisions on how to invest in their companies based on the political climate. And for Lucid and other EV makers, things just don't look good right now. With President Trump seemingly set against helping the electric vehicle market expand, automakers are on their own in trying to convince the general public to buy their vehicles. The result will likely be fewer incentives to buy EVs and, therefore, less interest among some buyers. While the company has a good product, there are too many uncertainties right now in the EV industry for investors to be bullish about Lucid, or any EV stocks for that matter. I still think EVs are the future of the automotive industry, but it's taking much longer for them to be successful than many people anticipated. The fact of the matter is that Lucid's vehicles are expensive, and in a time when interest rates are elevated compared to what consumers have grown used to, costs are rising because of tariffs, U.S. government supports for the EV industry are being removed, and there's plenty of economic uncertainty ahead, finding interested buyers for them becomes meaningfully harder. That doesn't mean Lucid is doomed, but I think it would be better for potential investors to wait and see how some of these uncertainties and headwinds shake out before buying the company's stock. Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Chris Neiger 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. Should You Buy Lucid While It's Below $3? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Why Lucid Group Inc. (LCID) Went Down Today
We recently published a list of . In this article, we are going to take a look at where Lucid Group Inc. (NASDAQ:LCID) stands against other stocks that were sold down today. Ten mid-cap stocks were sold down on Monday, bucking a wider market optimism, amid the lack of catalysts to spark buying appetite, while investors continued to digest the firms' own developments affecting their businesses. The Dow Jones rose by only 0.32 percent, while the S&P 500 and the tech-heavy Nasdaq each inched up by 0.09 percent and 0.02 percent, respectively. Meanwhile, the 10 companies booked losses as high as 5 to 16 percent. In this article, we list the names of the worst-performing stocks and detail the reasons behind their decline. To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume. An engineer examining an electric vehicle design in a lab, showing the company's innovative battery systems. Lucid Group dropped its share prices by 5.63 percent on Monday to close at $2.6899 apiece amid the absence of fresh catalysts to reignite investor enthusiasm. Earlier this month, the company reported that its net loss attributable to shareholders grew by 6.9 percent to $731 million from the $684 million registered in the same period last year. Revenues, however, increased by 36 percent to $235 million from $172 million year-on-year. According to the company, it is on track to ramp up vehicle production to 20,000 units per year, more than double the 9,000 units delivered last year. In the first quarter alone, Lucid Group Inc. (NASDAQ:LCID) delivered 3,109 units, translating to $235 million in sales. 'Lucid Gravity is beginning to arrive in more customers' driveways and at our studios, and combined with our progress toward future initiatives, our company is well-positioned for future success,' said Lucid Group Inc. (NASDAQ:LCID) Interim CEO Marc Winterhoff. Overall, LCID ranks 10th on our list of stocks that were sold down today. While we acknowledge the potential of LCID as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LCID but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
20-05-2025
- Automotive
- Yahoo
1 Overlooked Potential Catalyst for Lucid
Lucid has notched five consecutive quarters of record deliveries. Saudi Arabia is the electric vehicle maker's largest shareholder. Auto import tariffs in Saudi Arabia would benefit Lucid's business. 10 stocks we like better than Lucid Group › Lucid Group (NASDAQ: LCID) has been on a hot streak of late with five consecutive quarters of record deliveries, and it might have an overlooked catalyst that came to the surface recently: tariffs. Unless you found a rock to hide under, however tempting that may be, you couldn't miss the wave after wave of tariffs, updates, retaliatory measures, deals, and truces that have recently taken place. While Trump administration tariffs may negatively impact Lucid, potential tariffs elsewhere could be a huge win. Here's why. What you probably already know is that Lucid is massively backed up by Saudi Arabia's Public Investment Fund (PIF), which holds a more than 60% stake in the electric vehicle (EV) maker. In fact, the PIF is Lucid's top shareholder. What you might not know is that Saudi Arabia imports nearly every car, because only one automaker selling vehicles in the country assembles them there -- and that automaker is Lucid. Lucid would stand to benefit if tariffs were slapped on automotive imports in Saudi Arabia. The prices on every competing vehicle would rise, giving Lucid an advantage in an area where it could sell more vehicles. And the idea might not be as far-fetched as you think. Of course, Lucid certainly welcomes the idea. Not implementing tariffs on foreign cars would "run the risk that you kill the industry in its infancy," said Interim Lucid CEO Marc Winterhoff, in an interview, according to Bloomberg News. "It doesn't mean that this has to go on forever, but in order to have that kind of change in the market, you need to support local players in the beginning," he continued. Also per Winterhoff, Lucid has already held talks with the Saudi government about these potential tariffs to boost domestic auto manufacturing and cut dependence on imports -- and, you know, give Lucid a huge leg up on the domestic market. Here's where things get trickier than Lucid simply suggesting to the government that auto import tariffs are a good idea. If Saudi Arabia were to go through with the strategy, it could risk butting heads with the U.S. at a time when the latter is aggressively trying to use tariffs on imports as a negotiating tactic. Saudi Arabia slapping tariffs on auto imports could cause retaliatory measures from the U.S. as Ford Motor Company and General Motors are popular import brands in the country. On the flip side, Saudi Arabia has strategic reason to defend its home automotive turf sooner rather than later. That's because it plans to reduce dependence on foreign imports and then begin exporting cars via an automotive manufacturing hub on the Red Sea Coast with companies such as Lucid helping lead the charge. While Lucid is currently burning money like it's a cash furnace, the business has momentum with sales rising and Gravity deliveries set to accelerate. It also plans to expand into new countries in Europe and the Middle East. Potential tariffs in Saudi Arabia on auto imports would just be another small catalyst for the company -- it's worth keeping your eye on. Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor's total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Daniel Miller 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. 1 Overlooked Potential Catalyst for Lucid was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
Why Lucid Group Inc. (LCID) Went Down Today
We recently published a list of . In this article, we are going to take a look at where Lucid Group Inc. (NASDAQ:LCID) stands against other stocks that were sold down today. Ten mid-cap stocks were sold down on Monday, bucking a wider market optimism, amid the lack of catalysts to spark buying appetite, while investors continued to digest the firms' own developments affecting their businesses. The Dow Jones rose by only 0.32 percent, while the S&P 500 and the tech-heavy Nasdaq each inched up by 0.09 percent and 0.02 percent, respectively. Meanwhile, the 10 companies booked losses as high as 5 to 16 percent. In this article, we list the names of the worst-performing stocks and detail the reasons behind their decline. To come up with the list, we considered only the stocks with a $2 billion market capitalization and $5 million in trading volume. An engineer examining an electric vehicle design in a lab, showing the company's innovative battery systems. Lucid Group dropped its share prices by 5.63 percent on Monday to close at $2.6899 apiece amid the absence of fresh catalysts to reignite investor enthusiasm. Earlier this month, the company reported that its net loss attributable to shareholders grew by 6.9 percent to $731 million from the $684 million registered in the same period last year. Revenues, however, increased by 36 percent to $235 million from $172 million year-on-year. According to the company, it is on track to ramp up vehicle production to 20,000 units per year, more than double the 9,000 units delivered last year. In the first quarter alone, Lucid Group Inc. (NASDAQ:LCID) delivered 3,109 units, translating to $235 million in sales. 'Lucid Gravity is beginning to arrive in more customers' driveways and at our studios, and combined with our progress toward future initiatives, our company is well-positioned for future success,' said Lucid Group Inc. (NASDAQ:LCID) Interim CEO Marc Winterhoff. Overall, LCID ranks 10th on our list of stocks that were sold down today. While we acknowledge the potential of LCID as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LCID but that trades at less than 5 times its earnings, check out our report about this . READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
14-05-2025
- Automotive
- Bloomberg
Lucid Would Welcome Saudi Tariffs to Support Carmaking Ambitions
Saudi-backed electric-vehicle maker Lucid Group Inc. said the kingdom should consider tariffs on foreign cars to boost domestic auto manufacturing and cut reliance on imports. Not doing so would 'run the risk that you kill the industry in its infancy,' Interim Chief Executive Officer Marc Winterhoff said in an interview on the sidelines of the Saudi-US Investment Forum in Riyadh.
