A Lucid electric vehicle is shown inside one of the company's retail stores at a shopping mall in San Diego, California, U.S.,October 20, 2023. REUTERS/Mike Blake/File Photo
(Reuters) - Lucid Group said on Thursday its deliveries and production fell in the fourth quarter from a year earlier, sending its shares down to a record low.
High interest rates have weakened demand for EVs as customers cut back on big-ticket purchases, which has prompted automakers such as Ford and General Motors to push back their planned EV and battery factory expansion plans.
Lucid has also been hit by a price war started by market leader Tesla a year ago to solidify its EV market share and combat slowing demand.
"With (Lucid) shares hitting a new record low, we see little in the way of fundamental or technical support for the stock and expect additional lows to be set," said Garrett Nelson, senior equity analyst at CFRA Research in a research note.
Lucid's deliveries fell about 10% to 1,734 vehicles in the three months to Dec. 31, compared with 1,932 units it handed over in the year-ago quarter.
Sector peer Rivian missed market expectations for deliveries in the final quarter of 2023 due to a broader slowdown in EV demand in the United States.
Lucid's production fell about 31% to 2,391 vehicles in the quarter, taking its annual production to 8,428 vehicles, in line with its lowered target of 8,000 to 8,500 units.
In November, the company cut down its earlier production forecast from more than 10,000 units, saying it needed "to prudently align (its output) with deliveries."
Shares of the company, backed by Saudi Arabia's Public Investment Fund (PIF), fell around 38% last year.
"The results imply that LCID's cash burn rates have remained extremely high, and its runway is clearly shortening," said Nelson.
Lucid's fourth-quarter deliveries and production grew compared to the preceding three months.
The company is expected to report quarterly financial results on Feb. 21.
(Reporting by Zaheer Kachwala and Harshita Mary Varghese in Bengaluru; Editing by Shinjini Ganguli)
