© 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.