Electric vehicles (EVs) maker Lucid Group, Inc. (NASDAQ: LCID) has recalled 1,117 units of its 2022 Air model in the U.S. because of a flaw in the display screen of the vehicle, a report published by Investing.com said.
The National Highway Traffic Safety Administration (NHTSA) said that the EV’s display screen may get disabled due to an issue with the wiring harness. If the display screen stops working, passengers will not be able to see critical information like warning lights, gear selection, and speedometer, thus increasing the chances of a crash.
It is the company’s second recall this year. In February, Lucid recalled nearly 200 Air Luxury vehicles because of an issue with the model’s suspension.
Headquartered in California, Lucid is engaged in the production and sale of EVs, batteries, and powertrains. It launched its first EV in September 2021.
At the beginning of this month, the company reported better-than-expected results for the first quarter of 2022. Loss stood at $0.05 per share, narrower than the Street’s estimate of $0.31 per share and the year-ago loss of $3.4 per share.
Price Target
Based on three Buys and one Sell, the stock has a Moderate Buy consensus rating. LCID’s average price target of $38.25 implies 119.2% upside potential from current levels. Shares have lost 66.3% over the past six months.
Hedge Funds’ Activity
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in Lucid is currently Very Positive, as the cumulative change in holdings across all three hedge funds that were active in the last quarter was an increase of 3.6 million shares.
Conclusion
Even though this is the company’s second recall in a short span of time, Lucid has a bright future. This is because more and more companies and nations are turning to EVs to reduce their carbon footprint.
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