Lucid shares stumble on dour EV production target as price war weighs Reuters via

Lucid shares stumble on dour EV production target as price war weighs By Reuters

© Reuters. FILE PHOTO: A Lucid Air electric vehicle is displayed in Scottsdale, Arizona, U.S., September 27, 2021. Picture taken September 27, 2021. REUTERS/Hyunjoo Jin

(Reuters) – Shares of Lucid Group Inc slumped 10% in premarket trading on Thursday after the electric vehicle maker’s 2023 production targets fell short of expectations amid waning demand and a price war unleashed by market leader Tesla (NASDAQ:) Inc.

Lucid expects to produce 10,000 to 14,000 luxury electric vehicles this year, below analysts’ estimates of 21,815 cars, according to Visible Alpha.

It also reported a sharp fall in fourth-quarter orders as the company battles supply-chain snags and soaring inflation that has dampened demand.

Aggressive price cuts by Tesla and Ford Motor (NYSE:) Co have made it harder for loss-making rivals such as Rivian Automotive Inc and Lucid to gain market share as consumers tighten their purse strings.

Tesla shares rose 1.3%.

About a quarter of Lucid’s free float shares are in short position, according to analytics firm Ortex.

The company’s stock had surged to a six-month high in late January on market speculation that its largest backer, Saudi Arabia’s Public Investment Fund, wanted to purchase the EV maker.

Meanwhile, Nikola Corp’s shares rose 4.7% on receiving an order for 20 hydrogen electric trucks from German logistics company Richter Group.

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