After Rivian’s (NASDAQ:RIVN) unsanctimonious departure from the Nasdaq-100, it seems another electric vehicle (EV) maker may be on the way out: Lucid Motors (NASDAQ:LCID) stock. Indeed, Rivian is set to be replaced on the Nasdaq-100 by ON Semiconductor (NASDAQ:ON) stock.
Will Lucid be joining the growing list of former Nasdaq-100 companies?
Well, maybe. Like Rivian, Lucid has had a bumpy time of it in recent memory. Lucid’s market capitalization is currently trending around $13 billion. Shares are down more than 75% from early 2022.
Like Rivian, Lucid also commanded plenty of Wall Street buzz in 2021 due to its future growth potential, only to lose much of its value as investors found other EV companies to bet on. Down from a peak of $55 in November 2021, LCID stock currently trades for around $6.70.
What else do you need to know about Lucid lately?
LCID Stock Selloff Continues Following Production Issues
Just last week, Lucid announced a $3 billion stock offering to address production hiccups. The news, unfortunately, fell on sour ears. Investors caused a 24% drop in the share price following the announcement.
Apparently, production slowdowns are behind much of Lucid’s recent declines. However, the treatment is almost as bad as the disease in this case. That’s because the company’s $3 billion offering will cause a 20% dilutive effect.
Of the $3 billion offering, roughly $1.2 billion will consist of a public offering, equivalent to 173.5 million shares. Meanwhile, the other $1.8 billion, or 256.6 million shares, will come via Lucid’s single-largest private benefactor — Saudi Arabia’s Public Investment Fund (PIF).
In Lucid’s fourth-quarter earnings call, CEO Peter Rawlinson attempted to assure investors that the company has “solved production.” However, clearly not every investor is convinced of that sentiment.
It’s unclear when or if Lucid will regain public favor. Until then, the company will have to face the reality that its time on the Nasdaq-100 may be fleeting.
On the date of publication, Shrey Dua 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.
