Lucid shares hit a record low on Thursday following the release of its quarterly production results. The automaker delivered fewer vehicles in the last quarter of 2023 compared to the same period in 2022.
In a statement, Lucid reported producing a total of 2,391 vehicles in Q4, with 1,734 of them delivered to customers. This marked roughly a 10 percent decline in deliveries compared to the same period the previous year when 1,932 units were handed over to customers.
Meanwhile, its production decreased by around 31 percent for the last quarter of the year, although Lucid had previously cautioned investors about this possibility. Throughout 2023, the automaker revised its production forecasts twice, starting from an initial 12,000, then reducing it to 10,000, and ultimately settling between 8,000 and 8,500.
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The EV company managed to meet the final target, producing a total of 8,428 vehicles in all in 2023. That was about 17 percent more vehicles than it managed to produce in 2022. Despite that, Barron’s reports that the company’s stock was down 6.3 percent in early trading on Thursday.
While these results are unfavorable for the automaker, they may not be the sole factor affecting its share value. Alongside reporting its Q4 figures, investors also discovered that inflation exceeded December forecasts.
As a result of that, the expectation is that interest will be high for longer than expected, making cars more expensive. In Lucid’s case, that particularly bad news since it only sells a single premium electric sedan, demand for which is more sensitive to interest rates.
In a note seen by Reuters, Garrett Nelson, a senior equity analyst at CFRA Research, suggests that Lucid’s share prices may continue to decline from this point.
“With (Lucid) shares hitting a new record low, we see little in the way of fundamental or technical support for the stock and expect additional lows to be set,” Nelson wrote.
