Lucid Group Up Over 3% - What's Going On With The EV Stock?

Zinger Key Points
  • Lucid Group sees shares rise 3% after unveiling price cuts for Lucid Air models, including maintenance perks.
  • Concerns persist over NHTSA's investigation into Lucid's recall remedy for Air Sedans, addressing HVCH defrosting issue.

Lucid Group, Inc. LCID shares are trading higher on Thursday. 

The company said Lucid Air Pure is now priced from $69,900, with two years of scheduled maintenance included at no additional cost.

The Lucid Air Touring, with two motors, make a combined 620 hp. The Air Touring is now priced from $77,900.

Earlier, Air Pure was priced starting from $77,400, and the Air Touring from $85,900.

The electric vehicle operator also announced a new charging allowance of $1,000 towards the Lucid charging accessory of the customer’s choosing.

Over the last six months, shares of Lucid Group slumped over 40%, significantly lower than its top peer Tesla, Inc.‘s TSLA fall of above 15%.

Earlier this month, The National Highway Traffic Safety Administration said that it initiated an investigation to evaluate the effectiveness of a remedy proposed by Lucid Group for a recall issued in January.

In January, Lucid recalled over 2,000 Air Sedans made during 2022-2023 due to concerns regarding the failure of the high voltage coolant heater (HVCH) to defrost the windshield.

To address this issue, Lucid stated that it would update the software to detect a failure and alert the driver. If the HVCH fails, it can then be replaced, the company explained.

However, NHTSA expressed concern on Monday, stating that this solution may not be sufficient, as drivers may only realize their windshield defroster is not working while operating the vehicle. They might receive a warning during the same journey when they notice their windshield is not defrosting.

Lucid is scheduled to report its fourth quarter 2023 financial results on Wednesday, February 21, 2024.

Price Action: LCID shares are trading higher by 3.77% to $3.58 on the last check Thursday. 

Photo via Company

Market News and Data brought to you by Benzinga APIs
Posted In: EquitiesNewsMarketsMoversGeneralBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!