Lucid (LCID) will be removed from the Nasdaq 100 Index during the annual reconstitution on December 18, 2023.
The Nasdaq 100 Index, which tracks the 100 largest non-financial companies listed on Nasdaq, is undergoing its yearly reshuffling, and Lucid, along with six other firms, will find itself delisted at the end of the week. This move was widely expected, given Lucid’s challenging year, marked by a continuous decline in stock value and production challenges.
The latest blow comes amidst a difficult period for Lucid, with its stock down more than 25% year-to-date. The challenges for Lucid have been many, including a third-quarter earnings miss that resulted in a 10% stock slump a month ago. Lucid also revised its production guidance downward by 15% to 20% for the year after failing to meet delivery estimates in both the second and third quarters.
Not only is Lucid struggling to build cars, the ones it does build cost the company $338,000 per car. The biggest loser in all of this is Saudi Arabia’s Public Investment Fund (PIF), which has seen the value of its majority stake in Lucid drop by more than 90%.
Despite the removal from the Nasdaq 100, Lucid’s situation is not irreversible. Rivian faced a similar fate earlier this year and in the days following its removal the company’s share prices skyrocketed more than 85%.
However, unlike Rivian, challenges persist as Lucid faces continued demand concerns, growing competition, and internal production hurdles. The company has even resorted to offering a $2,000 discount to existing Tesla owners who purchase a Lucid Air sedan. Ironically, the discount is called a “Conquest Credit Bonus.”