Lucid (LCID +0.10%) stock is seeing another valuation pullback in this week's trading and is down roughly 7.6% from where it stood at last week's close heading into this Friday's market open. The S&P 500 and the Nasdaq Composite were up 0.5% and 0.2%, respectively, over the same stretch. Lucid shares had been down as much as 11.8% over the period prior to seeing some rebound momentum in Thursday's session.
The electric vehicle (EV) specialist's share price is losing ground in conjunction with concerns about the impact of new tariffs and general concerns about the scalability of its business. As of this writing, the stock is now down 52% year to date.
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Lucid slips on tariff risks
On Aug. 22, the U.S. implemented new tariffs of 50% on a bundle of imported Canadian goods valued at roughly $20 billion annually. In turn, Canada announced on Aug. 25 that it would be implementing a new round of retaliatory tariffs ranging between 15% and 50% on select U.S. goods valued at approximately $20 billion that is set to go into effect on Sept. 8.
While the list of new tariffs from Canada did not include automobiles manufactured in the U.S., President Donald Trump threatened to institute new tariffs on automobiles made in Canada in response. If that were to happen, it's reasonable to expect that Canada could respond with expanded tariffs on U.S.-made automobiles -- which could have a significant adverse impact on Lucid.
NASDAQ: LCID
Key Data Points
Investors are worried about Lucid's outlook
In addition to tariff-related pressures this week, Lucid stock has continued to pull back in response to general concerns about the company's performance outlook. The company's quest to achieve the economies of scale necessary to improve its gross margins has proceeded at a relatively slow pace, and the business has recently suffered operational issues, including vehicle recalls and a cybersecurity breach at one of its vendors. While the company's vehicles are generally highly regarded, the business has been struggling to execute on its growth strategies.
