By admin 
Bright (LCID -6.89%) The stock is losing ground in Wednesday’s trading. The company’s stock price was down 6% as of 2:30 PM ET, having fallen as much as 10.2% earlier in the trading day.
Lucid stocks are falling due to catalysts related to the results of the US presidential election. With Donald Trump’s victory, investors believe the new administration could bring negative catalysts for the electric car.EV) industry.
Lucid stocks fall in response to Trump’s election victory
With Trump returning to the White House in January, some major policy changes are in store, and the change in administration could create headwinds for EV market players.
Some investors expect the Trump administration to eliminate incentives and tax breaks that have encouraged the purchase of electric vehicles. If that happens, it could hurt demand for Lucid’s vehicles.
Plus, it could make it harder for smaller players to compete against Tesla and gain market share in the space. While Lucid is seeing big sell-offs today, Tesla shares are rising. The EV leader’s share price was up 14.1% at the time of writing.
What’s next for Lucid?
Lucid is scheduled to release third-quarter results and host a conference call tomorrow after the market closes. Although revenue and profit have yet to be reported, the company has already shared its vehicle production and delivery figures for the period. The EV specialist produced 1,805 vehicles this quarter and delivered 2,781 vehicles.
Lucid’s long-term prospects depend on whether it can increase production and demand to the point where it sees strong benefits from economies of scale. Right now, the company is burning through cash. Last quarter, it posted a net loss of about $643.4 million on revenue of about $200.6 million.
On the plus side, Lucid has strong financial backing from the Saudi Public Investment Fund, and the company recently announced new share sales. The company has adequate funding and should be able to secure new capital through additional share sales, but a potential shift to profitability for the company could still be some way off.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool holds and recommends positions in Tesla. The Motley Fool has one disclosure policy.