Feb 23 (Reuters) – Shares of Lucid Group Inc (LCID.O) slumped 10% in premarket trading on Thursday after the electric vehicle maker’s 2023 production targets fell short of expectations amid waning demand and a price war unleashed by market leader Tesla Inc (TSLA.O).
Lucid expects to produce 10,000 to 14,000 luxury electric vehicles this year, below analysts’ estimates of 21,815 cars, according to Visible Alpha.
It also reported a sharp fall in fourth-quarter orders as the company battles supply-chain snags and soaring inflation that has dampened demand.
Aggressive price cuts by Tesla and Ford Motor Co (F.N) have made it harder for loss-making rivals such as Rivian Automotive Inc (RIVN.O) and Lucid to gain market share as consumers tighten their purse strings.
Tesla shares rose 1.3%.
About a quarter of Lucid’s free float shares are in short position, according to analytics firm Ortex.
The company’s stock had surged to a six-month high in late January on market speculation that its largest backer, Saudi Arabia’s Public Investment Fund, wanted to purchase the EV maker.
Latest Updates
View 2 more stories
Meanwhile, Nikola Corp’s shares (NKLA.O) rose 4.7% on receiving an order for 20 hydrogen electric trucks from German logistics company Richter Group.
Reporting by Medha Singh in Bengaluru; Editing by Devika Syamnath
Our Standards: The Thomson Reuters Trust Principles.