Lucid Stock to Go From $2 to $20

Lucid Group Inc. (NASDAQ: LCID) is in trouble. One partial solution to that is a 1-for-10 reverse stock split. It would take shares from their current $2 to $20. There are several reasons Lucid would do this. One is that if the stock falls much further, it runs into Nasdaq trading rules about low stock prices. Another may be to convince investors that it is not a penny stock. A reverse stock split signals how much trouble Lucid Group Inc. (NASDAQ: LCID) is in. And the EV maker’s problems continue to worsen. Take this quiz to see if you’re on track to retire. (sponsored) The fact of the matter is that there is an element of smoke and mirrors. Lucid’s problems continue to get worse. The company is in what was once among America’s most forward-looking industries. That same industry is struggling today. The sector is also under siege from more successful companies in China. In 2021, President Biden set a target for 50% of all vehicles sold to be EVs by 2030. In February, the number was under 8%, and EV sales in the United States are close to stagnant. The U.S. EV industry is crowded, too. Despite troubles, Tesla Inc. (NASDAQ: TSLA) still has nearly 50% of the market. Legacy car companies, such as GM and Ford Motor Co. (NYSE: F), have bought their way to 7% market shares by spending billions of dollars on failed EV programs. Although Ford doesn’t like the math, at one point last year, it lost $125,000 on every EV it sold. Ford has struggled with EVs so terribly that it has relaunched its initiative in the sector. The day of the announcement, the stock fell on lower than the average volume. While Tesla’s stock is up 241% in the past five years, it is down 18% this year. Some of this is because CEO Elon Musk is a controversial figure. However, the more critical issue is that Tesla’s unit sales are down. The Worst $2 Stock Lucid is the worst $2 stock investors can buy on any equity market. It is down 31% this year, while the S&P 500 is 9% higher. According to Yahoo, the average price target among analysts who cover Lucid is $2.50. It traded at that level last month. The Lucid stock price collapse was partly due to it cutting back its forecast of production for the year to a range of 18,000 to 20,000. Earlier in the year, management put the figure at 20,000. Interim CEO Marc Winterhoff tried to steady investors. He told CNBC, “I have never seen so many surprises within a year as this year. So all of those plans are still set up for where we were before, but we just want to be a little bit more cautious and, therefore, provide a range.” He was whistling past the graveyard. Lucid posted an adjusted loss of $0.24 per share in the most recently reported quarter. Wall Street had expected $0.21. Revenue for the quarter was $259 million, compared to a projected $280 million. The company’s net loss was $855 million, compared to $790 million in last year’s period. Lucid only delivered 3,309 vehicles in the quarter. Investors did not seem to care that Uber would invest $300 million and plans to build 20,000 robotaxis in the next six years. Lucid Stock Price Prediction and Forecast 2025-2030 The post Lucid Stock to Go From $2 to $20 appeared first on 24/7 Wall St..