Is Lucid Group a Millionaire-Maker Stock?

Smaller stocks are ideal for investors willing to take additional risks for the potential for multi-bagger returns. With a stock price of just $2.22 (corresponding to a market cap of $6.77 billion), Lucid Group (NASDAQ: LCID) fits into this category. But the electric vehicle maker didn't get this cheap by accident. Let's dig deeper to see if it can overcome its operational challenges and generate massive wealth over the long term. Looking at Lucid's stock price chart, it is clear that something went terribly wrong for the company. Shares have fallen by a whopping 96% from their all-time high of $58 (reached in early 2021), which means many early investors have been almost completely wiped out. The problem had a lot to do with macroeconomic factors outside management's control.For starters, post-pandemic inflation caused the Federal Reserve to aggressively hike interest rates, making it harder for consumers to access credit to afford Lucid's high-priced sedans (the flagship Lucid Air starts at $71,400). Furthermore, EV demand began to slow as early adopters were reached and more competition entered the market. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool