Electric vehicle maker Lucid Group (LCID) has recently begun delivering its luxury sedans. However, with this achievement, is it wise to buy the stock now even though the company has not yet generated any revenue? Let’s find out.Luxury electric vehicle company Lucid Group, Inc. (LCID), which is based in Newark, Calif., had an impressive stock market debut on July 26, 2021, merging with special purpose acquisition company Churchill Capital Corp IV. Furthermore, it has completed its first Lucid Air Dream Edition delivery—the first electric car with a range of more than 500 miles on a single charge.
Over the past five days, the stock has gained 53.4% in price to close yesterday’s trading session at $36.99.
However, it is currently trading 75.3% below its 52-week high of $64.86, which it hit on February 18, 2021. The electric vehicle (EV) industry is facing severe semiconductor chip and labor shortages, which could hamper the company’s production plans. Moreover, rising competition in the EV space and the company’s zero revenues so far make its near-term prospects bleak.