Should You Buy Lucid Motors While It's Below $2.50?

There's no question electric vehicles will continue to grow as a percentage of vehicles sold around the world, but that doesn't mean every EV company is worth buying. It's difficult to make a sustainable profit in the auto industry, and competition is coming into the market quickly.Lucid (NASDAQ: LCID) has seen some of these challenges first-hand, which is why the stock is down to $2.01 per share as of Friday's market close. Is it time to jump on this EV stock below $2.50?I want to start by looking at Tesla (NASDAQ: TSLA), the company Lucid would most like to be like. Tesla has positive margins and free cash flow, but you can see in the chart below that margins were highest during the pandemic when the supply of vehicles was low. In 2023, the company had to cut prices to maintain sales and hasn't grown the top line since. Margins were crushed in that time.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool