Stock outlook for Lucid Group: prospects for continuation?

The luxury electric vehicle manufacturer, Lucid Group, is facing uncertain times. Founded in 2007, the company has been a mainstay on the U.S. tech exchange Nasdaq Composite, but recent financial struggles have cast a shadow over its future.

Over the past three years, the stock of Lucid Group has lost nearly 90% of its value, and the stock price was heading towards the $1 mark. In an effort to save its listing on the Nasdaq Composite, the company executed a 1:10 reverse stock split just days ago.

Despite expectations to sell between 18,000 and 20,000 vehicles this year, Lucid Group reported a loss of $0.28 per share on revenue of $259 million in the last quarter. The gross margin of the company is -105%, indicating significant losses in the production of its vehicles.

These financial struggles have raised significant doubts about Lucid Group's ability to survive. The market cap of the company has fallen to a mere $5 billion, and the stock price has plummeted by more than half over the past year.

Nasdaq Composite does not tolerate long-term listings in the penny stock range, and the company's current cash burn rate suggests that a capital raise will be necessary in the future. The stock market today's doubts about Lucid Group's survival are not without reason, and the future existence of the company as an automaker is uncertain, with predictions that it may not exist in a few years.

These challenges are a far cry from the early promise of Lucid Group, which was heralded as a potential competitor to Tesla. However, the company has yet to turn a profit and faces stiff competition in the electric vehicle market. Only time will tell if Lucid Group can navigate these challenges and secure a place in the industry.