Lucid, a prominent electric vehicle manufacturer, saw a decline in its stock price during pre-market trading on Tuesday following the announcement of Chief Financial Officer Sherry House’s resignation. While management transitions are not uncommon, recent news has left investors disappointed.
At the start of trading, Lucid’s shares were down 2.2% to $4.51 per share. Meanwhile, S&P 500 futures remained flat and Nasdaq Composite futures showed a slight increase of 0.1%.
The decline in Lucid shares began on Monday after Nasdaq revealed its annual changes to the Nasdaq-100, an index comprised of the largest non-financial companies listed on the Nasdaq stock market. The removal of a company from this index often leads to selling pressure. In Lucid’s case, the drop amounted to 2.5%. This change will take effect on December 18th. Notably, the Invesco QQQ ETF, which tracks the Nasdaq-100 and manages around $220 billion in assets, may also be impacted by this adjustment.
Sherry House has been with Lucid since the company’s merger with a special purpose acquisition company in 2021. She will continue to serve as a consultant until the end of the year. CEO Peter Rawlinson expressed his gratitude for House’s contributions to the company, acknowledging her significant role in Lucid’s corporate milestones, including its public listing in 2021, the production and delivery of Lucid Air, and the recent unveiling of Lucid Gravity.
Lucid Gravity is an SUV and serves as Lucid’s second model. Unveiled in November, deliveries are expected to begin in late 2024.
Gagan Dhingra, Lucid’s current Vice President of Accounting and Principal Accounting Officer, will assume the role of interim Chief Financial Officer. The company has also initiated a search for a permanent CFO.
Over the past 12 months, Lucid’s stock has experienced a significant decline of approximately 44%. Factors such as rising interest rates, a slowdown in electric vehicle demand, and increasing competition in the EV market have all contributed to the decrease in investor sentiment.
Initially, Lucid aimed to manufacture around 12,000 vehicles in 2023, but now expects that number to be closer to 8,000. As of now, Lucid has produced just over 6,000 units in the first three quarters of the year.