Lucid Group’s (NASDAQ: LCID) stock is being removed from the Nasdaq 100 Index at the end of the week, as its annual reconstitution has filtered out several companies from remaining in the prestigious group.
The Nasdaq 100 Index is made up of 100 of the largest non-financial companies listed in Nasdaq. The companies listed in the Nasdaq 100 have to fit a variety of criteria, including:
- Listed exclusively in Nasdaq in either Global Select or Global Market tiers
- Offered in American markets for at least three months
- 200,000 shares in average daily volume
- Current in quarterly and annual reports
- Not in bankruptcy proceedings
Every year, the index does rebalancing and re-ranking, and stocks that fail to move into the Top 100 of the yearly review are only retained if they were in the top 100 at the time of the previous year’s review.
Additionally, if the company fails to rank in the top 125, it is also dropped. Finally, if, at the end of two consecutive months, it fails to have an index weighting of at least one-tenth of a percent, it can also be dropped.
Lucid entered the index in 2021 after the shuffling that year, but now it is set to be removed after a poor stock performance this year, as well as an underwhelming performance in terms of vehicle production and deliveries.
Down 34 percent this year and nearly 31 percent in the past six months, Lucid will be one of several stocks to be removed. eBay, Zoom, and JD.com, Inc. will also be among those removed, while DoorDash, CDW Corporation, and Coca-Cola Europacific Partners will be added.
Lucid has struggled to meet its goals for deliveries and production. Growth has been extremely hard to come by, and the company has been losing hundreds of thousands of dollars on every vehicle built because it has not been able to scale production.
In November, it cut its production forecast for the year, revising its guidance from 10,000 units to 8,000-8,500 cars as it attempts to “prudently align with deliveries.”
Last week, Lucid made changes to the lineup of the Air sedan to encourage more customization within the trims it offers. This could lead to more consumer interest, but scaling production needs to be at the forefront of the automaker’s plans.
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