Is Lucid Motors going out of business? Lucid motors is a company that gained a lot of attention for being the next big competitor of Tesla. They made this rumor official by launching a competitor of Tesla called the Lucid motors year. But recently, Elon musk confirmed that the company is going out of business and is dealing with canceling orders.
The sudden decline of the company is quite surprising as it was perceived as the next big thing in the automobile market. Experts were suggesting Tesla develop a defense strategy for Lucid motors. The company has been dealing with the cancellation of orders, and due to that, it has developed a very aggressive strategy. It has been pressuring its retail staff to reverse the cancellation of orders.
It has also started offering a 10% discount on all orders during checkout. This made Elon musk tweet that the company is not here for long. People are now assuming that the electric vehicle market is quite tough. Just because Tesla made it, it doesn’t mean that every other company will become successful.
Lucid Motors is making its retail team call people 12 times a day, which frustrates old customers. The company has ordered its employees to repeat this practice twice a week and ensure that all those who have canceled their order reverse their decision.
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Is Lucid motors still in business?
Currently, Lucid motors are still in business. The company has been facing losses as many of its orders have been canceled by customers. The stocks of the company continued to fall. In the last month, the company’s stocks have decreased by 30%, and if you look at the year 2022 days, the stock price decreased by 80%.
Experts have said that the company will need investors that can help save the company. In order to increase the scalability, the owners will have to attract more investment. It was in the year 2020 that Lucid motors started offering IPO. One of the main highlights of attracting investors by this company was its high number of reservations.
Investors became increasingly interested in the company because of the huge number of registrations that the company had for its EV cars that were yet to be launched in the market. But by 2021, the reservations fell by 3000. This means there was a huge difference between actual and potential orders. Most of the customers who had made reservations ended up canceling their orders.
Is Lucid motors struggling?
Lucid motors have faced an issue of cancellation of orders. The stocks of this company have fallen dramatically. The company has also been facing issues with software as well as manufacturing. There have been reports that the cars from this company are facing an issue of a car braking and driving in the wrong direction. This is a consequence of both faulty software and manufacturing-related defects. Due to faulty software, the cars are running in the wrong direction.
It has been reported that Lucid motors are facing a problem that most of the automobile companies in the EV sector face. They currently need help with their software and internal framework. The company still needs to design software that complies with the functions they claim to offer. Still, some defects keep coming here and there.
You can see a potential glitch upon connecting any iOS device or an android device with the car. This means that the car still needs to be able to handle and perform all the qualities that the manufacturers are boosting. There is still a long way to go before this car can qualify as a fully functional and competent vehicle.
Do Lucid motors stocks have a future?
From the current scenario, it doesn’t seem like the Lucid motors stocks have a future. The stock value has been declining for petrol for the past couple of years. Initially, the stocks of Lucid motors seemed very promising and attracted a lot of investors. The company decided to offer initial public offerings in the year 2020.
At that time, they had many registrations for their vehicles. But over time, most of these registrations were canceled for various reasons. The company was left with around one-third of the initial registrations. They started using harsh strategies to overcome the problem. The company’s retail team was asked to call customers 12 times a day twice a week to reverse the cancellation decision.
The stocks of Lucid motors are likely to decline in the coming months. Even Elon Musk recently tweeted that the company is on the verge of destruction and will not sustain itself in the market long enough. The EV market is quite competitive, and every other organization needs help to become successful.
When it initially came into the market, Lucid motors seemed like a very promising company that would sell good quality electric vehicles. It also attracted hundreds of investors because of its futuristic business strategies. The product also seemed promising, which is why so many people registered For the soon-to-be-launched cars. Based on these registrations, Lucid motors attracted thousands of dollars in investment.
Lucid also offered an IPO and raised a lot of money. At one point, they had a lot of cash and even built a new manufacturing unit. But over some time, these registrations got canceled. People started withdrawing their money or names from the registration list. This was because the product had some complaints and it was found that the cars were defective in terms of the software and manufacturing. Due to these defects, people became apprehensive about buying these cars.
The future of Lucid motors is not optimistic. The company is likely to sustain itself in the market for a couple of years after which it will have to shut down or go for an acquisition. If it keeps on operating independently, it might end up in a death trap. The company needs to make responsible decisions to salvage itself from the mess it has become stuck in.