The electric vehicle industry is currently exposed to large winds.
Lucid vehicles are expensive and leadership stability is a high question mark.
It is best to wait and see the attitude towards clear promotions, not to buy.
10 shares we like more than Lucid Group ›
The electric vehicle industry is enticing because, despite some failures, many countries and customers around the world change their attention to EV. The increase in EV adoption is often attributed to both consumer interest and government incentives to promote industrial growth.
The result is that 2024 $ 1.3 million was sold. EV, ie 7% increased compared to previous years. However, these are not all in the Sun and Rainbow EV industry. Consumers quotes the high cost of electric vehicles and the EV infrastructure as a significant obstacle to buying an electric vehicle.
Lucid (Nasdaq: LCID) Knows the fight to get to the Earth in the US, like anyone. After many years, Lucid Stock has fallen slower than expected production and several leadership changes. The shares decreased by about 50%compared to the highest top of the 52 weeks, which is why the share price is currently $ 3.
Due to a sudden downturn, now is the right time to buy clear shares with a discount? I think it is better for investors to wait for the company. That is why it is better not to buy clear at the moment.
Image Source: Lucid.
Having a long -term perspective on the shares you belongs is an important investment strategy, so anxiety is caused by US retreat from some of its EV infrastructure investments and incentives.
First, Trump’s administration threw cold water to maintain tax incentives to buy electric vehicles. The incentives of new vehicles were worth up to $ 7,500, and although Lucid did not match them – its EV is too expensive – incentives were still acting as a catalyst to strengthen the wider EV industry.
It is not the case for buyers to buy EV and less incentives for automakers to move on to electrified models. In addition, the administration has regained the government’s previous commitment to invest billions of dollars in EV charging infrastructure. There is a legitimate struggle for funding, but if the administration is on the road, states may not receive $ 5 billion funding to create EV charkers across the country.
The wide market conditions of the EV are clear as it is still a popular EV brand. Lucid and its peers need a high demand for their vehicles and higher EV charging infrastructure for success. Unfortunately, this seems less likely over the next few years.
Of course, not all Lucido’s problems stem from external forces. The problem of Lucid is currently facing that its vehicles are simply too expensive for many American buyers. Not only does it harm Lucid opportunities to expand their customers, it also harms your ability to expand your production more efficiently.
To get profit in the automotive industry, companies must have the economy of scale to the composition of their products, dividing the components of many vehicles. The cheapest Lucid air sedan starts at nearly $ 70,000, and its Gravity SUV starts at around $ 80,000. The difficulty is still low in producing, so any cost savings sharing in parts have not yet had time to start.
More importantly, air and gravity initial prices are expensive to even EV standards. The average EV operation price in the US in May was about $ 57,700. As a result, the cheapest air model is 21% higher than average EV and gravity is 39% more expensive than average.
2027 or 2028 is expected to be expected. Lucid will spend its Earth EV costing around $ 48,000. This will eventually help Lucid achieve more efficient production costs and potentially expand its customer base, but how well the company will be able to deliver, and when the land is actually sold, there is a big unknown.
Just four months ago, Peter Rawlinson retired from Lucid, Director General. CoO Marc Winterhoff is now a temporary CEO because the board is looking for a permanent leader.
Although Lucid may have been a good step to find a new leadership, the fact that the company is still looking for a permanent substitute for such a difficult time in Lucid means that investors should probably be careful that they are currently jumping with Lucid.
Leadership changes can be normal but at this time Lucid is the third Director General-Du Permanent and One Intermediate-Nuu 2019 I would like to see more stability in C-Suite until I feel comfortable that Lucid is on the right path and can implement my EV ambitions.
I rooted for Lucid, like most EV companies, but that doesn’t mean I will feel comfortable buying my stock right now. For all the reasons above, I think it is best to wait and look at Lucid before buying shares.
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Chris Aliger has no position in any of the above shares. The Motley fool has no position in any of the above stocks. The Motley fool has a disclosure policy.
Should you buy clear promotions while they are less than $ 3? initially released by The Motley Fool
