With shares down by over 90% from an all-time high of $58 (reached in early 2021), Lucid Motors (NASDAQ: LCID) stock hasn't been kind to its early investors. Like many companies that went public through special-purpose acquisition mergers, the electric automaker overpromised and underdelivered as interest rates rose and market conditions tightened. Let's dig deeper into what the next five years could have in store.

At the start of the decade, electric vehicles (EVs) looked like the next big thing in automotive technology. They probably still are. But the road to widespread adoption might be more challenging than previously expected. Higher interest rates, consumer preferences, and rising competition are eating away at industry margins and growth potential.

As a smaller company without the capitalization of or a legacy gasoline-powered business to subsidize its EV segment losses, Lucid is in a uniquely challenging position as it adapts to tighter market conditions. First-quarter earnings highlight its ongoing struggle.

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Source Fool.com