Shares of Lucid Group Inc. slumped Monday as part of a broad selloff in the electric-vehicle sector and after the California-based EV maker cut prices on Lucid Air models, but up to 11.5%.
The announcement comes ahead of Lucid’s earnings report, which is due after Monday’s closing bell. Separately, Lucid also acknowledged a recall of 59 Air EVs, citing a faulty rearview-camera image.
sank 4.8% in morning trading, putting it on track for the lowest close since June 27. The stock has tumbled 17.2% amid a five-day nonwinning streak, during which it closed unchanged on Aug. 3.
On Aug. 4, Lucid announced its Pure Summer Event, with “limited-time” offers through Aug. 31.
The sales price for the Air Pure all-wheel drive now starts at $82,400, down 5.7% from a previous price of $87,400. A 36-month lease available for $749 per month with $7,699 due at signing.
The Air Touring’s starting price was cut by 11.5%, to is now available for $95,000 from $107,400. A 36-month lease can be had for $1,149 per month, with $9,814 due at signing.
For the Air Grand Touring, the starting price was cut by 9.4%, to $125,000 from $138,000. Or, a 36-month lease would cost $1,399 per month with $10,899 due at signing.
Also, the destination fee was lowered by 9.1%, to $1,500 from $1,650.
For purchases, 72-month month financing is available at an annual percentage rate of 4.99%.
Lucid’s price cuts follow those of EV leader Tesla Inc.
which did so to boost sales. It worked, with Tesla last month reporting second-quarter sales that soared 47% from a year ago, although profitability shrank as a result.
Lucid is scheduled to report second-quarter results after the close Monday, with analysts surveyed by FactSet expecting, on average, per-share losses to widen to 34 cents from 33 cents a year ago, and for revenue to increase 86.6% to $181.6 million.
Separately, the company said it was recalling 59 Lucid Air vehicles, model years 2022 to 2023.
“A rearview camera image that does not display while in reverse decreases the driver’s visibility, increasing the risk of injury or crash,” according to a letter from the National Highway Traffic Safety Administration.
The company said it has released an over-the-air software update, free of charge, with owner-notification letters expected to be mailed on Sept. 25.
Lucid’s stock drop was part of a broad selloff in the EV sector.
Among other EV makers, shares of Tesla
dropped 2.9% after the company announced that its chief financial officer was stepping down.
Elsewhere, shares of Rivian Automotive Inc.
shed 4.8%, Nikola Corp.’s
stock tumbled 8.8%, Fisker Inc.
shares slid 4% and Mullen Automotive Inc.’s
stock gave up 6.4%.
That compares with a 0.5% decline in the Global X Autonomous & Electric Vehicles exchange-traded fund
and 0.7% rise by the S&P 500