Despite a recall of about 200 vehicles, shares of Lucid Motors (NASDAQ:LCID) closed in the green today by more than 5%. This is Lucid’s first-ever vehicle recall. The recall concerns the snap ring on the front strut damper for the 2022 Lucid Air. The National Highway Traffic Safety Administration (NHTSA) states that a failure in the snap ring can cause a “sudden drop in ride height or front brake line damage.” Both of these scenarios from the failure of the snap ring can increase the chance of a crash.
To remedy this issue, Lucid owners can bring their electric vehicles (EVs) to a Lucid service station for a front strut damper replacement free of charge. Furthermore, a company spokesperson stated that:
“Lucid is not aware of any instances of strut damper failure in a vehicle. Lucid estimates that the issue will be present on approximately 1% of the 203 potentially affected vehicles.”
Lucid isn’t the only EV company that has dealt with recalls in recent weeks. So far, Tesla (NASDQ:TSLA) has recalled almost 1.5 million vehicles this year. However, these recalls can be fixed by an over-the-air (OTA) update and do not require Tesla owners to physically take their EV to an automobile shop.
With Lucid’s upcoming earnings confirmed to be on Feb. 28, what else should you know about the EV maker?
LCID Stock: 7 Things To Know
- Recalls are a commonplace occurrence. In 2022, there have been 35 recalls by automakers so far.
- Lucid may want to take a page out of Tesla’s playbook and further improve its software to enhance OTA updates.
- OTA updates are also less costly than physical fixes.
- The 2022 Lucid Air starts at $78,900 and goes as high as $170,500. The more expensive versions of the Air can travel up to 520 miles on a single charge. Meanwhile, the $78,900 Air model has a range of 406 miles.
- For Q4, analysts are expecting a loss per share of 35 cents. The high range of the estimate falls at a loss of 26 cents, while the low range falls at a loss of 45 cents.
- In addition, analysts are expecting revenue of $36.74 million.
- For Q1 guidance, analysts are expecting revenue of $212 million.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.