Electric vehicle (EV) maker Lucid (NASDAQ:LCID) just hit a record low after the company announced that it needed to recall more than 2,000 Lucid Air sedans. Specifically, the recall is due to a faulty parts issue that could be a safety risk, as it may hinder the driver’s vision. This news comes shortly after the EV maker also reported that its deliveries fell last quarter versus the same period a year earlier.
Shares of LCID stock are down more than 3% as of this writing.
LCID Stock: The Recall and Deliveries Decline
Lucid is recalling 2022 and 2023 Lucid Air sedan models because of the vehicles’ high voltage coolant heaters, which may not adequately defrost the windshields of the EVs and prevent drivers from sufficiently seeing the road as a result. The company says that it will be able to identify whether this component has failed in the sedans via a software update “by the middle of this month,” Reuters reports. The automaker also noted that the part in question came from one of its suppliers.
Recall aside, Lucid also disclosed yesterday that it had provided customers with just 1,734 EVs during the fourth quarter of 2023. That figure is down almost 12% year-over-year (YOY) from the 1,932 EVs the firm delivered in Q4 2022.
Broader Issues in the EV Sector
In recent days, the entire EV sector has been struggling to an extent. Yesterday, rental car company Hertz (NASDAQ:HTZ) disclosed that it would look to sell roughly 20,000 EVs due to higher repair costs. Meanwhile, over the past few months, the media has generally been emphasizing the idea that EV demand is weakening.
Last quarter, U.S. EV sales climbed 40% versus the same period a year earlier, although that marked a deceleration from the 49% YOY increase in Q3. Moreover, fourth-quarter EV sales were “higher than in Q3 by roughly 5,000 units.”
On the date of publication, Larry Ramer 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.
