LCID Stock News: Lucid Group Inc extends slide after it issues its first vehicle recall

NASDAQ:LCID opened the week following the President’s Day long weekend in the red, as the EV maker’s stock slid for the third straight session. Shares of LCID dropped by 4.06% and closed the trading day at $25.51. It’s not exactly an ideal start to the week ahead of the company’s quarterly earnings call next Monday, but the ongoing geopolitical tensions in Ukraine along with market weakness for growth sectors continues to lead Lucid down a one-way path downward. Joining Lucid in the red on Tuesday were peers like Tesla (NASDAQ:TSLA), Rivian (NASDAQ:RIVN), and Nio (NYSE:NIO).

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There was a business-specific reason why Lucid was trading lower on Tuesday as well. Earlier in the day, the company reported its first vehicle recall for its luxury Air sedan. The recall covers a mechanical issue that cannot be resolved by an over-the-air software update like Tesla has been able to do with its recent recalls. Of Lucid’s first production run of about 500 cars, 203 Air sedans have been recalled, from which the company estimates only 1% of vehicles will have the issue. So in the end, it’s quite a drop in the stock’s price for a defect that could potentially only affect 2 of its cars.

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Lucid’s main rival, Tesla, is in the headlines again as CEO Elon Musk continues his tumultuous relationship with the SEC. Over the weekend, Musk and his attorneys alleged that the SEC has released confidential information about the company to affect its stock price. It’s not the first time the two sides have clashed, with the SEC famously limiting Musk’s Twitter activity in the past over allegations of manipulating the markets.