Is Lucid Air a Good Electric Vehicle Stock to Add to Your Portfolio? By StockNews
Lucid Group Inc., an EV manufacturer, recently went public through an SPAC transaction backed Wall Street dealmaker Michael Klein. Ex-Tesla Inc. engineer runs the company. It has a solid foothold in this industry. Is the stock worth buying now, considering the current global shortage of semiconductor chips and the possibility that the company will be sued? For a Proforma equity value in excess of $24billion, Lucid Group Inc., a Newark, Calif.-based producer and distributor of electric vehicles, merged with Churchill Capital Corp IV, a special-purpose acquisition company (SPAC), for a consolidated valuation.
In its Nasdaq debut, the stock surged 19.5% in value.
However, closing yesterday’s trading session at $25.07, LCID’s stock is trading 61.3% below its 52-week high of $64.86, indicating bearish sentiment. In addition, a current class-action lawsuit and concerns related to the global chip shortage plaguing the EV industry could raise investors’ anxiety surrounding the stock. Moreover, given the stock’s steep valuation and weak fundamentals, it could be a risky bet.
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