--- title: "Why Shares of Lucid Group Sank 22% This Week" type: "News" locale: "en" url: "https://longbridge.com/en/news/288901469.md" description: "Lucid Group (LCID) shares plummeted 22% this week following an abrupt CEO transition and another poor quarterly report. The EV manufacturer faces severe liquidity concerns, with only $700 million in cash against a negative free cash flow of $4.6 billion over the past year. Despite raising $1 billion from Uber and Saudi Arabia's PIF, analysts warn the company may run out of money before year-end due to high cash burn and failure to scale production, advising investors to avoid buying the dip." datetime: "2026-06-05T20:10:19.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/288901469.md) - [en](https://longbridge.com/en/news/288901469.md) - [zh-HK](https://longbridge.com/zh-HK/news/288901469.md) --- # Why Shares of Lucid Group Sank 22% This Week ## Key Points - Lucid Group had a CEO transition this week. - The company is in a rough patch and could run out of money this year. - The stock looks very risky with major liquidity concerns and a failure to scale up its electric vehicle manufacturing. - 10 stocks we like better than Lucid Group › Shares of **Lucid Group** (NASDAQ: LCID) fell 22% this week, according to data from S&P Global Market Intelligence. An electric vehicle (EV) brand that once had a market cap of over $75 billion in late 2021, Lucid is now teetering on the brink after another poor quarter and an abrupt CEO transition this week. It is also trying to raise funds to stem the holes in its balance sheet. Here's why the stock was falling this week, and whether investors should consider buying the dip. _**Will AI create the world's first trillionaire?** Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. **Continue »**_ ## More cash burn and a CEO transition The bad news just continues for Lucid Group. On June 1st, the company announced that Silvio Napoli, previously announced as the CEO on April 14th, had immediately taken the reins as the leader of the business. The tone of the announcement was a slight surprise, especially given the context around Lucid's business. A luxury EV brand, Lucid has failed to gain traction worldwide, delivering just 3,000 vehicles last quarter. Over the last twelve months, its free cash flow was negative $4.6 billion. At the end of last quarter, it had just $700 million in cash on its balance sheet, meaning it is very close to running out of money. Image source: Getty Images. ## Should you buy the dip? Management has raised $1 billion from Uber Technologies and the Saudi Arabian investment fund PIF. However, even with this cash infusion -- which is highly dilutive to shareholders -- the company is liable to run out of money before the end of this year. Avoid buying the dip on Lucid Group stock. ## Should you buy stock in Lucid Group right now? Before you buy stock in Lucid Group, consider this: The _Motley Fool Stock Advisor_ analyst team just identified what they believe are the **10 best stocks** 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 $439,847**!\* Or when **Nvidia** made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, **you’d have $1,342,065**!\* Now, it’s worth noting _Stock Advisor’s_ total average return is 968% — a market-crushing outperformance compared to 211% for the S&P 500. **Don't miss the latest top 10 list, available with _Stock Advisor_, and join an investing community built by individual investors for individual investors.** **See the 10 stocks »** _\*Stock Advisor returns as of June 5, 2026._ _Brett Schafer 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. ### Related Stocks - [LCID.US](https://longbridge.com/en/quote/LCID.US.md) - [UBER.US](https://longbridge.com/en/quote/UBER.US.md) - [LCDL.US](https://longbridge.com/en/quote/LCDL.US.md) - [UBRL.US](https://longbridge.com/en/quote/UBRL.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [INTC.US](https://longbridge.com/en/quote/INTC.US.md) - [NFLX.US](https://longbridge.com/en/quote/NFLX.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [NDAQ.US](https://longbridge.com/en/quote/NDAQ.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Lucid (LCID) finally adds hands-free driving to the Gravity SUV](https://longbridge.com/en/news/289196488.md) - [Lucid Stock Hits New All-Time Low: What's Driving The Action?](https://longbridge.com/en/news/288887670.md) - [The Lucid Gravity's Latest Update Brings Hands-Free Driving And Google Maps Information](https://longbridge.com/en/news/289102588.md) - [Top Lucid Motors executive departs amid new CEO’s leadership shakeup](https://longbridge.com/en/news/289267944.md) - [13:52 ETLCID Investors Have Opportunity to Lead Lucid Group, Inc. 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