What happened

Lucid Group (LCID 1.22%) stock can't seem to find a bottom. Shares of the electric vehicle (EV) maker fell 11% in September according to data provided by S&P Global Market Intelligence, and they have already lost nearly as much so far this month. One-third of Lucid's stock's value has been wiped out in just three months. 

Even as concerns about demand for Lucid cars linger, the company's latest move is yet another reflection of its struggle to find a footing in the heated EV market. 

So what

Lucid disappointed investors some weeks ago when it reported a 50% jump in its loss from operations for the second quarter and delivered just about 1,400 EVs in the quarter, the same amount as in its first quarter. Lucid also relented to the EV price pressure triggered by Tesla and slashed the prices of its EVs in August. Most importantly, cash burn continued to hurt the company, and to ensure it has enough money to run its operations and growth plans, Lucid even raised $3 billion in funding in August, expecting the money to last until 2025.

Lucid reiterated its 2023 production guidance of 10,000 units, but its earnings report otherwise didn't offer investors any hopes of a turnaround. The stock has fallen consistently in recent weeks, with Lucid's latest move exacerbating investors' fears this month. 

Just days ago, Lucid launched a cheaper model of its luxury Air sedan called the Air Pure Real-Wheel Drive, with a starting price of $77,400 and a range of 410 miles. That's $5,000 lower than the company's cheapest model so far. Here's how investors are interpreting the launch: They believe Lucid is struggling to sell its cars amid the price war, and has therefore launched a cheaper model to attract customers.

There's some merit in this argument, going by Lucid's low production and delivery numbers, as well as high inventory in recent quarters. The company, in fact, deviated from its usual practice and did not reveal its reservation number at all last quarter, raising further concerns about demand.

Now what

There was one sliver of hope from Lucid last month: It opened its first facility in Saudi Arabia in September. This is Lucid's first-ever international plant and its second manufacturing plant overall (the first being in Arizona).

The EV maker started assembling Lucid Air cars at the plant and eventually expects to manufacture 155,000 units per year at the facility at full capacity. Lucid already has a purchase commitment of 50,000 cars from the Saudi Arabian government, with an option to purchase an additional 50,000 cars over the next 10 years.

There's another tidbit: CNBC reported on a Lucid executive stating that the company is exploring plans to enter China, the world's largest EV market.

Investors' focus right now, though, is on the U.S., where Lucid is clearly struggling. It is selling few cars but incurring huge expenses, and it may have to consistently look for funds to stay afloat. Investors are aware of the risks, which is why Lucid stock has fallen so much in recent weeks. The markets, perhaps, aren't expecting much from Lucid's next earnings report, which is expected in early November.