EV maker Lucid Group Inc. (LCID) recently made its stock market debut through an SPAC deal backed by Wall Street dealmaker Michael Klein. The company, which is run by an ex-Tesla Inc. engineer, has secured a strong foothold in the industry. However, given the global semiconductor chip shortage, and the fact that the company is battling a lawsuit, is the stock worth owning now? Read more to find out.Lucid Group Inc. (LCID), a Newark, Calif.-based electric car manufacturer led by an ex-Tesla Inc. (TSLA) engineer, recently merged with Churchill Capital Corp IV (CCIV), a special purpose acquisition company (SPAC) for a Pro-forma equity value of $24 billion.
The stock began trading on July 26, 2021, and surged 19% in price in its Nasdaq debut.
However, closing yesterday’s trading session at $25.07, LCID’s stock is trading 61.3% below its 52-week high of $64.86, indicating bearish sentiment. In addition, a current class-action lawsuit and concerns related to the global chip shortage plaguing the EV industry could raise investors’ anxiety surrounding the stock. Moreover, given the stock’s steep valuation and weak fundamentals, it could be a risky bet.