Lucid Group ( (LCID) ) has fallen by -7.24%. Read on to learn why.
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Lucid Group’s stock fell 7.24% over the past week as sentiment around the electric-vehicle maker turned more negative ahead of its upcoming earnings report. Options activity highlighted the mounting anxiety: traders were more actively buying downside protection, with put volumes running above normal and the Put/Call ratio climbing above 2, while implied volatility ticked higher. Technically, the stock is flashing a Sell signal after a year-to-date slide of nearly 60%, underscoring how fragile confidence has become despite the company’s $3.8 billion market value.
Fundamentally, investors remain worried about weak demand, heavy cash burn, and a long and uncertain road to profitability. Analysts have been trimming their expectations, with Morgan Stanley recently downgrading Lucid to Sell and warning that the company is unlikely to reach gross profitability before 2028. The bank also flagged the likelihood of further equity raises, which could dilute existing shareholders – a key concern for a stock that has already fallen sharply this year.
At the same time, Lucid is trying to broaden its market and reassure buyers with new initiatives. The company launched “Lucid Recharged,” its first certified pre-owned program, which offers inspected, refurbished vehicles with extended warranty coverage and upgrade options such as advanced driver-assistance features. Wall Street, however, remains cautious: despite a consensus Hold rating and an average price target that suggests sizable upside from current levels, investors this week chose to focus on the near-term risks rather than the long-term opportunity, contributing to the latest slide in Lucid Group shares.