Where Will Lucid Motors Stock Be in 5 Years?

Down roughly 91% percent from its all-time high of $58 (reached in early 2021), Lucid Motors (NASDAQ: LCID) has been a punishing bet for early shareholders. While the luxury electric vehicle (EV) maker has found a potentially lucrative niche, near-term macroeconomic pressures have left it in a fight for survival. Will the next five years lead to a brighter future for Lucid's investors? Let's dig deeper to find out. 

Founded in 2007 by former  executives, the automaker now known as Lucid Motors spent much of the last decade and a half as an original equipment manufacturer (OEM) for electric vehicle batteries and powertrains. In 2016, the company shifted focus toward building its own vehicles and went public through a reverse merger with a special purpose acquisition company (SPAC) in 2021. 

While Lucid's shares initially performed well, investors have become less optimistic. The company faces near-term macroeconomic challenges like rising interest rates, which reduce consumer-spending power and demand for new cars, which are often bought using credit. Furthermore, competition is rising in the EV industry, leading to growth and margin pressure as rivals like Tesla slash prices to maintain their market shares. These issues came to a head in the company's most recent results.  

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Source Fool.com