Stocks

Why Lucid Stock Is Sinking Today

Published December 10, 2024

Lucid (LCID -7.65%) is experiencing a decline in its stock price during Tuesday's trading session. As of 1:15 p.m. ET, shares were down by 7.7%, with an earlier drop reaching 8.6%. Despite these sell-offs, Lucid’s stock remains up 6% over the past month.

The primary reason for the downturn today is the recent filings submitted to the Securities and Exchange Commission (SEC), revealing that several company insiders have sold their shares. While the current sell-off is concerning, it is notable that the stock has plummeted approximately 44% throughout this year's trading.

Insider Sales Impact the Market

Recently, Lucid announced four separate filings with the SEC that detailed stock sales by its insiders. Notably, senior vice president and chief of engineering, Eric Bach, sold 100,815 shares on December 5. Other executives, including vice president of accounting and internal control, Gagan Dhingra, and chief operating officer, Marc Winterhoff, sold shares amounting to 55,476 and 90,453 shares respectively on the same day.

CEO and chief technology officer, Peter Rawlinson, sold a significant 476,261 shares of Lucid stock on December 5. All these transactions occurred at a price of around $2.10 per share. However, it is worth mentioning that Rawlinson also acquired 181,467 shares through stock options at a much lower price of $0.83 per share the following day, December 6.

Future Outlook for Lucid Stock

Despite today’s stock decline, Lucid has seen some positive movement recently. The stock price increased after the company announced the commencement of manufacturing its Gravity electric SUV. Furthermore, investors have been reassessing potential consequences regarding the tax credits and rebates for electric vehicle purchases that may be altered or reduced in light of a new administration.

Shareholders will not have to wait long for updates concerning vehicle production and delivery figures. As the fourth quarter comes to a close at the end of December, Lucid is expected to release production and delivery data around the first week of January. This information could offer early insights into demand and operational momentum for the Gravity SUV, which is crucial for the company’s future performance.

Disclaimer: The author has no position in any of the stocks mentioned, and the publication has no position in any of the stocks mentioned.

Lucid, Stock, Insiders