Lucid (NASDAQ: LCID) has become something of a model for the problems facing Western-based electric vehicle (EV) makers that aren’t Tesla (NASDAQ: TSLA).

Not only has LCID stock only gone lower in 2024 and beyond, but technical analysis (TA) of the stock now signals an even bigger downtrend to come.

Specifically, on the evening of Thursday, November 14, Lucid formed its first death cross chart pattern since 2022. The death cross is a technical analysis signal that forms when the moving average (MA) at short term goes below the long term MA.

As the name suggests, this signals an impending downtrend – a particularly worrying prospect for investors in LCID stock.

Why the latest death cross could kill Lucid stock

For starters, the death of previous Lucid shares triggered a downturn that the company has not escaped so far. Lucid shares entered 2022 priced above $40 and entered 2023 priced below $7.

Repeating such a downtrend could ultimately eliminate Lucid as a credible investment and credible player in the electric vehicle (EV) industry, as the stock fell 49.52% to its price at time of publication of $2.10 before even forming the death cross.

Why is Lucid’s stock price collapsing?

Lucid’s downfall is a story of death by a thousand cuts, and the electric vehicle maker could still be in the running based purely on its influence and wealth. of its majority shareholder – the Saudi Public Investment Fund (PIF).

Once touted as a “Tesla killer,” the electric vehicle maker has unfortunately underperformed investors’ hopes and its own promises, as, for example, it failed to meet its initial delivery target for the first half of 2024 . about 90%.

Additionally, while traders and analysts were optimistic that Lucid’s incoming models could revitalize the company, the news The fact that the first new SUV coming will cost more than $94,000 and there won’t be a cheaper offering until 2025 has deeply disappointed them.

Could 2025 be better for LCID stock?

The electric vehicle maker’s problems with its inability to move its high-end units en masse could also worsen in the coming years due to a dramatic shift in U.S. policy.

Even the largest Western-based electric car maker, Tesla, entered a sharp 1-day decline following the announcement that the new Trump administration is I’m getting ready to cut the electric vehicle tax credit of $7,500. For its part, the LCID collapsed by 4.59% the same day.

The Republican’s promised price increases are also likely to impact the already high prices of Lucid models, meaning the company could face even stronger headwinds.

Such a perspective has become common among leading Wall Street analysts. Dan Ives of Wedbush, for examplehas long predicted that the electric vehicle industry as a whole will suffer under Trump, but that Tesla could benefit by better absorbing headwinds and increasing its lead over its competitors.

If the predicted dynamics play out, it would mean that Lucid’s already relatively tiny market share would decline even further, likely reinforcing the downward trend and leading to an ever-increasing number of missed delivery targets.

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