Why Lucid Stock Spiraled Lower -- Is It a Buy Now?

Lucid Group (NASDAQ: LCID) investors have had some reason to cheer this year. The young electric vehicle (EV) maker has posted seven consecutive quarters with record deliveries, with the third quarter reaching 4,078 vehicles. The third-quarter delivery record was a 23% gain over the previous quarter and a 46% gain over the prior year. However, despite this momentum from Lucid, the company still has serious drawbacks that investors need to consider, including an analyst downgrade that contributed to the stock's 40% tumble over the past month.Shares of Lucid tumbled on Monday after Stifel lowered its stock price target on the automaker from $21 down to $17, on concerns the company will need to raise more capital in the coming years. In fact, investors have already seen some evidence of this during the third quarter and even more recently. Management noted that Lucid agreed to increase the delayed draw term loan credit facility, or DDTL, from $750 million to $2 billion. It's essentially just a move that enables Lucid to draw more loan capital for running operations or other aspects of the business. That action was subsequent to the third quarter and essentially takes its total liquidity from $4.2 billion at quarter-end and raises it to roughly $5.5 billion. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool