Lucid And Other EV Stocks Crash After Tesla Earnings Report

On Thursday 27, Lucid Group, a leader in advanced luxury electric vehicles (EVs), is pleased to announce the opening of its newest Studio location at Fashion Island in Newport Beach, California. Despite that, Lucid is lower by Friday morning, with the stock decreasing 14% to $28.70, while in the pre-market trading, it is open at $28.25. What made LCID shares slump this week?

Lucid

The manufacturer of electric vehicles, Tesla late Wednesday, presented a financial report which provided recommendations on problems with the supply chain of microchips. After the announcement, the rest of the electric vehicle companies were hit; including Nio decreased by 4%, Rivian Automotive was down about 7.8% even Tesla’s stock market slumped to about 11%. Despite Tesla’s strong performance in the 4th quarter, at the moment, investors are focused on delays in production and restrictions on spare parts. It was a difficult start to the year, especially for electric car manufacturers, but Lucid was doing better until yesterday compared to other startups. Since the beginning of the year, Lucid has fallen by more than 38%.