Lucid Group nasdaq Lcid Stock Drops Post Announcement of Lucid Air Recall

Lucid Group (NASDAQ: LCID) Stock Drops Post Announcement of Lucid Air Recall

Lucid Group (NASDAQ: LCID) shares dropped by nearly 8% on Friday following the announcement of the recall of over 2,000 Lucid Air electric sedans. 

Lucid Group (LCID) has issued a recall for over 2,000 Lucid Air electric sedans, citing concerns about a defective component in the vehicles’ heating units.

Concerns specifically revolve around the high-voltage coolant heaters (HVCH) in Lucid Air vehicles from the 2022 and 2023 model years. These heaters provide warm air to regulate the car’s interior temperature and defrost the windshield.

In a recall report issued on Friday, Lucid highlighted that the lack of defrost capability could pose a safety risk, as it may lead to obstructed driver vision.

The company stated that a software update scheduled for this month will notify drivers in the event of a component failure in their vehicles. Any defective parts will be replaced at Lucid service centers.

Lucid specified that the high-voltage coolant heater (HVCH) components are sourced from the German company Webasto AG.

The development comes days after Lucid Group, Inc. (NASDAQ: LCID) disclosed its production and delivery figures for the fourth quarter. The report revealed the manufacture of 2,391 vehicles and the successful delivery of 1,734 units. The company has produced 8,428 vehicles and delivered 6,001 units in 2023.