Lucid Delayed Its Cosmos SUV. Time to Panic?
Lucid's future is in doubt after delaying its mid-sized vehicle platform.
Overview
For years, I have been covering Lucid Group (NASDAQ: LCID) stock. And for years, I have been warning investors about one key issue: the company's inability to get a mid-sized affordable vehicle to market.
Tesla is the company it is today largely due to its Model 3 sedan and Model Y crossover. These two vehicles were its first vehicles priced under $50,000. This low price point attracted millions of new buyers, allowing Tesla to expand its name-brand recognition and scale its production infrastructure to generate economies of scale, and thus sustainable profits that could then be repurposed into other growth initiatives.
Details
Fellow electric vehicle (EV) stock Rivian Automotive has followed a playbook very similar to Tesla's. The company started with two luxury-priced electric vehicles, but quickly pivoted its strategic focus to getting an affordable vehicle to market. Earlier this year, it began deliveries of its R2 SUV -- its first vehicle priced under $50,000.
Source
Originally published at www.fool.com.