Wall Street is said to be rational, but anybody that's been around long enough knows that emotions often carry the day. That said, over the long term, investors tend to get things correct, which helps explain the big ups and downs in the share price of electric vehicle (EV) maker Lucid Group (NASDAQ: LCID).

Given the stock trades well below its "going public" price, it seems like investors are pricing in a few big risks. And yet the market may still be too optimistic about its outlook.

Technically, Lucid didn't hold an initial public offering (IPO). It came public via a merger with a special purpose acquisition company (SPAC) -- essentially a public company created with the purpose of buying a private business to create a merged public entity and, in this case, that business was Lucid. If you bought stock when that deal was announced on Feb. 22, 2021, a $1,000 investment back then would have turned into a scant $122 today. 

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Source Fool.com