News Summary:
Luxury electric sports car manufacturer Lucid Group (LCID) intends to leave the Nasdaq 100 index on December 18 as part of the index’s annual update. Zoom Videocommunications Inc. and eBay Inc. will also be removed from Nasdaq, while new companies like DoorDash Inc. will be added to the index. The removal of Lucid from Nasdaq is the latest blow to its stock in a difficult year for the electric car company.
News Details:
Lucid Group’s (LCID) shares fell on Monday following news of the company’s removal from the Nasdaq 100 index. LCID shares will remain on the Nasdaq 100 until December 18.
Nasdaq (NDAQ) announced the annual listing changes on Friday. Six companies were added to the Nasdaq 100 at the same time, including DoorDash (DASH), Splunk Inc. (SPLK), and Coca-Cola Europacific Partners PLC (CCEP). In addition to Lucid, other companies removed included eBay (EBAY) and Zoom (ZM).
Lucid’s removal from Nasdaq is another setback in a challenging year for LCID shares, which have fallen more than 25% since the beginning of the year. Early Monday afternoon, shares were down over 2.5%.
A month ago, shares dropped 10% due to not meeting third-quarter earnings expectations. Revenues not only fell short of expectations, but Lucid also cut its production guidance for the year by 15% to 20%. This came after the company missed delivery expectations in both the third quarter and the second period.
In October, Lucid reported a loss of $338,000 per vehicle amid declining sales estimates. According to news reports, investments from Saudi Arabia, which holds a 60% stake in the electric car company, have dropped by 90% over the past two years.
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Source: Nasdaq. “Annual Changes to the Nasdaq-100.” Bloomberg. “Lucid Electric Car Company’s $338,000 Loss Per Vehicle Frustrates Investors.” (Subscription required.) Business Insider. “Saudi Stake in Lucid Falls by Over $50 Billion as Electric Car Startup Struggles, Says Report.”
Source: https://www.investopedia.com/lucid-shares-fall-after-nasdaq-100-exclusion-8414126
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