Why Lucid Stock Plummeted Today
Shares of electric car manufacturer Lucid Group (NASDAQ: LCID) took a tumble Friday morning. They're down 7.2% as of 9:50 a.m. ET in sympathy with a negative earnings report from fellow electric start-up Rivian Automotive (NASDAQ: RIVN) -- which is down 12.7%!
So what's bugging electric car investors today? Basically, the story goes like this:
Everyone knew already that companies like Rivian and Lucid were start-ups. Everyone was prepared for the fact that it would take a few quarters -- or even a year or more -- before they would be able to begin producing significant numbers of electric cars for their customers. What seems to have slipped investors' minds, however, is the fact that while these companies are ramping up production and attempting to grow their top lines, they'll be losing money down on the bottom line.
Source Fool.com
