Lucid Group is set to be removed from the Nasdaq 100 Index as part of the annual reconstitution, a process that evaluates and adjusts the composition of the prestigious index. The Nasdaq 100 Index comprises the 100 largest non-financial companies listed on Nasdaq, subject to specific criteria.
Companies within the Nasdaq 100 must be exclusively listed on Nasdaq in either Global Select or Global Market tiers, traded in American markets for at least three months, maintain an average daily volume of 200,000 shares, and remain current in quarterly and annual reports. Additionally, companies that fail to move into the Top 100 during the yearly review are retained only if they were in the top 100 at the time of the previous year's review.
Lucid entered the Nasdaq 100 in 2021 following a reshuffling but is now facing removal due to a challenging stock performance this year and below-par results in terms of vehicle production and deliveries. With a 34% decline in its stock value this year and nearly a 31% drop in the past six months, Lucid joins other companies like eBay, Zoom, and JD.com, Inc., slated for removal. Meanwhile, DoorDash, CDW Corporation, and Coca-Cola Europacific Partners are set to be added.
Lucid has grappled with challenges in meeting delivery and production targets, facing difficulties in achieving growth and sustaining financial losses on each vehicle due to production scaling issues. In November, the company revised its production forecast for the year, lowering its guidance from 10,000 units to 8,000-8,500 cars to align with deliveries more prudently.
Recent adjustments to the Air sedan lineup by Lucid aim to encourage customization within offered trims, potentially attracting more consumer interest. However, the automaker's primary focus remains on addressing production scaling to navigate the evolving market dynamics successfully.