-- The diverging fortunes of the two most prominent electric vehicle startups in the US show Wall Street is picking a side — and it’s not Lucid Group Inc.Having recently touched an all-time low, the stock is down nearly 25% this year, compared to a 1% decline for pickup truck-making peer Rivian Automotive Inc. in the same period. The percentage of bullish analyst ratings on Lucid has dwindled to only about a quarter of all recommendations.
“Lucid is well below the pace needed to hit even 10,000 cars this years, and that’s why they continue to bleed money,” Jerry Braakman, chief investment officer at First American Trust, said in an interview. “The stock will continue to be challenged until they can show that they have made a significant progress in the number of units sold.”
Once seen as the most credible competitors to Tesla Inc., Lucid and Rivian entered public markets in mid-to-late 2021, when market enthusiasm for new EV-makers were high. Their valuations soared before the tables rapidly turned in 2022 as traders veered from riskier growth investments. Lucid is down 91% from its peak, while Rivian has lost 89%.
At the same time, the firm is trying to find a foothold in a market where Tesla already rules. The company makes a luxury electric sedan that competes with Tesla’s Model S, along with several new models rolled out by more established global carmakers such as Mercedes-Benz Group AG, BMW AG, and Volkswagen AG’s Porsche and Audi brands.
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