Shares of Lucid Group Inc. (NASDAQ:LCID) are trading flat Friday morning as investors process a major vehicle recall. Here’s what investors need to know.
- Lucid Group stock is trading at depressed levels. What’s next for LCID stock?
NHTSA Announces Recall Of Over 27,000 Lucid Air Vehicles Over Fire Risk
Early activity on Friday is centered on a National Highway Traffic Safety Administration (NHTSA) notice disclosing a recall of 27,185 Lucid Air luxury sedans in the U.S., marking the company’s largest recall to date.
The regulatory safety recall stems from an exterior lighting circuit that can overheat due to insufficient overcurrent protection, posing potential fire hazards and loss of exterior illumination.
NHTSA advised owners to park their sedans outside and away from structures until fully updated.Lucid has already deployed a corrective over-the-air software update to enhance eFuse circuit protection, with NHTSA noting that over 20,700 vehicles have already received the digital fix.
Automotive Tariff Threats and Supply Chain Headwinds Pressure EV Sentiment
Sector-wide sentiment took a hit earlier in the week following proposed policy discussions to enact a 50% tariff on foreign vehicle imports and automotive components. The protectionist proposals prompted immediate recalibration across Wall Street regarding supply chain cost structures and international parts exposure.
Although Lucid manufactures its electric vehicles domestically at its Casa Grande, Arizona facility, investors remain concerned that tariffs on imported battery raw materials, specialized electronic assemblies, and international components could drive up unit production costs.
This potential supply chain friction threatens to squeeze margins further as the company works to scale its Gravity SUV rollout and achieve positive gross profitability.
LCID Stock Pauses Friday
LCID Price Action: Lucid Group shares were up 0.98% at $5.14 during premarket trading on Friday, according to Benzinga Pro data.
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