Lucid shares drop as deliveries take hit from Tesla’s price war

“We continue to view Lucid as a broken growth story and its ramp up rate has been particularly disappointing considering its newer, state-of-the-art factory in Casa Grande, Arizona,” CFRA Research analyst Garrett Nelson said.

Lucid’s Air luxury sedans start at $87,400, putting them in direct competition with the Elon Musk-led automaker’s Model S that costs $88,490.

“We continue to believe significant price cuts are needed on the Air, particularly in light of increasing competition, in order to stimulate demand,” Nelson added.

Lucid has also been struggling with a cash crunch and had unveiled plans in May to raise about $3 billion through a stock offering, nearly two-thirds of which would come from its largest investor Saudi Arabia’s Public Investment Fund (PIF).

Last month, the EV maker signed a deal with Aston Martin, giving the British company access to its electric powertrain and battery technologies in return for a 3.7 percent stake.

Lucid said it would report financial results for the second quarter on Aug. 7 after markets close.