LCID Stock News: Lucid Group Inc extends decline as PIPE expiry hits

Update: LCID shares are sharply lower in Wednesday's premarket as the PIPE transaction expires today allowing many shareholders that were previously locked up, now able to sell. There is no evidence of any large selling but investors appear increasingly nervous. The PIPE transaction was done at $15. 

See Wake Up Wall Street for more here. SKLZ (see here) AMC (see here) and GME (See here) also on the move in the premarket. 

NASDAQ:LCID has continued to disappoint shareholders who had high expectations for the stock once it completed its SPAC merger with CCIV. On Tuesday, shares of LCID fell a further 3.25% and closed the day at $19.96 as the stock broke below the $20.00 price barrier. The move lower was the sixth straight losing session for Lucid, and the stock has now fallen for 13 of the past 14 trading days. Lucid’s struggles came despite the EV sector posting positive days on Tuesday from the likes of Tesla (NASDAQ:TSLA) and Nio (NYSE:NIO) which popped by a surprising 4.05% during today’s session. 

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Lucid made an announcement on its production on Tuesday, but it wasn’t quite the news that shareholders have been waiting for. On September 27th, the company will open the doors to its AMP-1 production facility in Arizona to industry members, media, and even a small group of its customers. Invitees will also be able to test drive Lucid’s vehicles personally, something that has not been available to the public until now.

LCID stock price forecast

In other EV SPAC news, Israel company Ree Automotive (NASDAQ:REE) tumbled by 33.70% during Tuesday’s session. Ree isn’t an automaker per se, as it builds the platforms on which EVs are built. On Tuesday, the company announced it would be selling up to 30 million shares which represents the total PIPE investment, and shareholders clearly did not approve of that news. It’s not a good sign when early investors are already bailing on the company, and with Lucid’s PIPE lock up expiry coming on Wednesday, it's possible there could be more pain ahead for Lucid shareholders. 

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