CNBC’s Jim Cramer recommended investors sell Lucid Motors‘ shares during the ‘Lightning Round’ segment of his Mad Money program Friday, even as the struggling electric vehicle maker trades just above its all-time low.
“Jim, it’s such a pleasure to speak to you. My question is on Lucid stock,” a caller began before Cramer cut him off.
“Well, I’ll give you my answer,” Cramer said, pressing his signature sell button.
Lucid shares closed at $11.82 on Friday, less than a dollar above the record low of $11.09 reached December 17.
The stock has fallen 59% year-to-date, leaving the company with a market capitalization of approximately $4 billion — down from a peak of $90 billion in 2021 shortly after going public through a merger with Churchill Capital.
Prior Skepticism
Cramer has previously expressed doubts about Lucid despite praising its EV models.
“When I drove a Lucid, it’s absolutely a terrific car. And that’s the extent of what you should do with it. Drive it,” Cramer said in July after the company announced a partnership with Uber and autonomous driving startup Nuro.
Under that agreement, Uber committed to invest $300 million in Lucid and purchase 20,000 Gravity SUVs over the next six years.
Shares initially surged nearly 60% on the news before retreating 25% in subsequent days as investors noted the lack of detailed financial disclosures and digested the company’s 1-for-10 reverse stock split.
Cramer compared the Uber deal unfavorably to Volkswagen’s investment in the US EV maker Rivian.
“I think that you need a commitment, like the VW commitment to Rivian is extraordinary,” Cramer said at the time.
Volkswagen committed up to $5.8 billion to Rivian as part of a joint venture focused on electric vehicle architecture and software.
Company Responds to Challenges
Lucid has moved to address concerns on multiple fronts in recent days.
Interim CEO Marc Winterhoff sent an email to Gravity customers Friday acknowledging software problems and outlining fixes following sharp criticism from automotive reviewers.
As reported by EV, Winterhoff said the company shares customers’ “frustration” over the issues and detailed improvements in a recent software update.
Winterhoff also told CNBC the company is “very confident” it has resolved supply chain disruptions — including magnet shortages, an aluminum supplier fire, and chip constraints — that hampered Gravity production this year.
Separately, Nick Twork, Lucid‘s vice president of communications, addressed speculation about Saudi Arabia’s Public Investment Fund potentially taking the company private, noting that any dilution “hurts Saudis most” given PIF’s approximately 60% stake.
Year-End Push
Lucid is offering 36-month lease terms on its Air sedan through year end with delivery required by December 31.
Monthly payments start at $509 for the Air Pure with $4,749 due at signing, $599 for the Air Touring with $4,979 due at signing, and $899 for the Air Grand Touring with $6,999 due at signing. All terms include 10,000 miles annually.
As of press time Monday, Lucid shares were trading 5.1% higher at $12.42.
