Key Takeaways
- Electric luxury sports car manufacturer Lucid Group Inc. (LCID) will leave the Nasdaq 100 index on Dec. 18 as part of the stock index's annual update.
- Zoom Videocommunications Inc. and eBay Inc. are also among the six companies removed from the Nasdaq 100 index; new additions include DoorDash Inc.
- The Nasdaq 100 exclusion delivered the latest hit to Lucid's stock in a difficult year for the electric vehicle (EV) maker.
Lucid Group (LCID) shares took a dive in Monday trading after news that the electric vehicle (EV) company would be removed from the Nasdaq 100 Index. Shares of LCID will remain on the Nasdaq 100 until Dec. 18.
Nasdaq (NDAQ) announced the annual listing changes on Friday. Six companies were added to the Nasdaq 100 at the same time, including DoorDash (DASH), Splunk Inc. (SPLK), and Coca-Cola Europacific Partners PLC (CCEP). Besides Lucid, other companies among the six to be removed included eBay (EBAY) and Zoom (ZM).
To be sure, the shares of these companies will not be delisted, meaning they will continue to trade on stock exchanges, but will merely not be included in the Nasdaq 100 index. That also means mutual funds and exchange traded funds that track the index will rebalance their portfolios to trim positions in companies that are no longer in the index and build positions in those that became a part of it.
The exclusion from the index is the latest blow in a tough year for LCID stock, which is down more than 25% year-to-date. Early Monday afternoon, the stock was down more than 2.5%.
A month ago, shares slumped 10% on the back of a third-quarter earnings miss. Not only was revenue below expectations, but Lucid slashed its production guidance for the year by 15% to 20%. That's after the company failed to meet its delivery estimates in the third quarter as well as the second period.
In October, it was reported that Lucid was losing $338,000 per car as sales estimates plummeted. Saudi Arabia, which holds a 60% stake in the EV maker, has seen its investment drop 90% in value over the past two years, according to news reports.
Correction—Dec. 13, 2023: This article has been updated to clarify what exclusion from the Nasdaq 100 index means and how it's different from delisting.
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FAQs
Lucid would be a cash-strapped company if not for the PIF's backing. The company's losses could also rise further as it pumps more money into Gravity. These are just some of the risks that investors are taking note of, which partly explains why Lucid stock is falling back after last month's run-up.
Why is Lucid being removed from Nasdaq? ›
Lucid has struggled to meet its goals for deliveries and production. Growth has been extremely hard to come by, and the company has been losing hundreds of thousands of dollars on every vehicle built because it has not been able to scale production.
Should I sell Lucid stocks? ›
The reasons to sell Lucid's stock
The bears don't like Lucid because it's still cutting its prices, racking up steep losses, and is overly dependent on its Saudi Arabian backers. It has repeatedly slashed the prices of its Air sedans over the past two years, and its cheapest Pure model now costs about $70,000.
What happens when a stock falls below $1 on the Nasdaq? ›
Currently, if a company's stock falls below $1, it has 180 days to regain compliance with the minimum price requirement. If it fails to do so, the company can request an additional 180 days and, in some cases, appeal the delisting decision to a Nasdaq hearings panel.
Is Lucid a risky stock? ›
Lucid is undoubtedly a risky stock, but the ongoing dilution and risk of Saudi Arabia pulling its support are serious red flags. Even if Lucid survives, it still must cement itself as a leading electric vehicle brand capable of enough long-term growth to generate such lofty returns.
What is the prediction for Lucid stock? ›
The average price target for Lucid Diagnostics is $3.13. This is based on 4 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $4.00 ,the lowest forecast is $2.50. The average price target represents 269.89% Increase from the current price of $0.846.
What happens when a stock is removed from the Nasdaq 100? ›
Investors holding shares after a delisting will only be able to sell them OTC. That generally means less liquidity, finding it harder to locate buyers at the price you want, and potentially being left in the dark about what the company is up to. Nasdaq.
Is Lucid in trouble? ›
The Trouble With Lucid
One of the biggest issues for investors is that the company keeps reporting sizable quarterly losses, including a total of $2.7 billion over the past year. Production and delivery issues have contributed to those losses.
Is Lucid part of Nasdaq 100? ›
Late Friday, Nasdaq announced that Lucid would be removed from the Nasdaq 100 Index, effective prior to the market open on Dec. 18. The ouster was based on a routine annual reconstitution of the index.
What is a fair price for Lucid stock? ›
LCID Stock 12 Month Forecast
Based on 10 Wall Street analysts offering 12 month price targets for Lucid Group in the last 3 months. The average price target is $2.94 with a high forecast of $4.00 and a low forecast of $1.00. The average price target represents a -22.22% change from the last price of $3.78.
Lower selling prices, poor production and sales, and gaping negative margins are just some of the reasons why several analysts slashed their price targets on Lucid stock in recent weeks.
Is Lucid a good investment now? ›
Lucid Group
Earnings were better than expected and a big investor added more cash. But the risks are still significant. Shares of electric vehicle maker Lucid (LCID -3.08%) have had a mostly downhill ride since the company's market debut, falling over 90% from their 2021 price peak.
What is the 10 minute rule for Nasdaq? ›
Disclosure of Material News
* As long as the public is provided adequate notice (generally by press release) and granted access. Provide Nasdaq MarketWatch at least ten minutes prior notice of certain material news events when the public release of the information is made between 7:00 a.m. to 8:00 p.m. ET.
What is the minimum stock price to stay on the Nasdaq? ›
A company's shares listed on Nasdaq are required to maintain a closing bid price of no less than $1.00 per share (Minimum Bid Price Requirement). If the closing bid price of a company's shares are below $1.00 for 30 consecutive trading days, the company is considered to be in violation of Minimum Bid Price Requirement.
Can you sell a delisted stock? ›
If a company is delisted, you are still a shareholder, to the extent of a number of shares held. And yet, you cannot sell those shares on any exchange. However, you can sell it on the over-the-counter market. This means you can look for a buyer outside the stock exchange.
What will be the share price of Lucid in 2025? ›
Lucid Stock Price Prediction for 2025
As 2025 approaches, LCID stock is covered by 15 different analysts, with price targets ranging from $2.90 to $12. The consensus Lucid price target is $5.22, representing an upside of more than 20%.
Is Lucid stock undervalued? ›
The intrinsic value of one LCID stock under the Base Case scenario is 2.61 USD. Compared to the current market price of 3.94 USD, Lucid Group Inc is Overvalued by 34%.
Will Lucid drop prices? ›
Lucid has announced yet more price cuts to the lineup of its sole vehicle, the Air electric luxury sedan. The base Air Pure, which previously started at $78,900, is now priced from $71,400 including destination. Lucid's all-wheel-drive Air Touring starts at $79,400, down from the previous $87,400.
Is Lucid stock a hold? ›
Is it time to buy, sell, or hold Lucid's stock? Lucid's business might be stabilizing, but I don't see any compelling reasons to buy or hold its stock right now. So, for now, investors should either sell or avoid Lucid's stock until a few more green shoots appear.
