Lucid Group (LCID 0.41%) stock is losing ground again in Friday's trading. The electric vehicle (EV) company's share price was down 7.1% as of 1:15 p.m. ET, according to data from S&P Global Market Intelligence.
On the heels of the deliveries and production report that the company released yesterday, news hit today that Lucid would be recalling more than 2,000 vehicles. According to the announcement, the recall is due to possibly faulty high-voltage coolant heaters and includes both 2022 and 2023 Lucid Air model years.
Lucid stock sinks to another new low
Lucid stock sank to a new record low yesterday after the company published its vehicle delivery and production update for last year's fourth quarter. With today's news of a substantial recall for its Lucid Air luxury sedans, investors got an additional piece of bad news -- and the EV company's share price has set another new low in today's trading.
In the fourth quarter of 2023, Lucid produced 2,391 vehicles and delivered 1,734 vehicles. In other words, the recently announced recall affects more vehicles than the company delivered last quarter. For a bit more context, the EV player produced 8,428 vehicles last year and delivered 6,001 vehicles in the period.
What comes next for Lucid?
It's not unusual for a young company in a relatively new industry niche to encounter growing pains. On the other hand, the EV market is already intensely competitive and will likely get even more competitive in the future.
Lucid is posting substantial losses and will need to significantly scale up production and deliveries in order for the business to shift into profitability. While the company's vehicles have received accolades and generally strong reviews, the recent recall is a significant setback. The company has also had trouble meeting production targets recently.
Lucid is scheduled to publish its fourth-quarter earnings results on Feb. 21 and will host a conference call to provide more information about performance in the period and its business outlook.
