Lucid Group (NASDAQ:LCID) dipped in trading after the company recalled 5,251 Air luxury sedans from model years 2022 and 2023, according to a notice from the U.S. National Highway Traffic Safety Administration (NHTSA). This recall is due to a software error that could cause a loss of power.
More Details About Lucid’s Recall
This loss of power occurs unexpectedly due to the EV maker’s High Voltage Interlock (HVIL) safety mechanism while the vehicle is in Drive or Reverse. However, steering, brakes, and displays would still continue to function. According to Lucid, this issue was fixed with a software update last month that prevents HVIL activation in Drive or Reverse and instead displays a warning.
In addition, the EV maker will recall 7,506 of its Air luxury sedans from model years 2022 to 2024 due to an issue with its coolant heater that could fail to defrost the windshield. Regarding this coolant problem, LCID has issued another update to detect high-voltage coolant heater failures, providing warnings to affected drivers.
The company noted that only 255 vehicles have not accepted the new software update, making this a limited issue despite the relatively high number of vehicles included in the official recall.
Lucid’s Robust Q2 Vehicle Deliveries
Separately, Lucid reported robust Q2 vehicle deliveries on Monday, with production of 2,110 vehicles and 2,394 units delivered. In comparison, the company produced 1,728 vehicles and made 1,967 deliveries in the first quarter.
What Is the LCID Stock Price Prediction?
Analysts remain sidelined about LCID stock, with a Hold consensus rating based on a unanimous six Holds. Over the past year, LCID has declined by more than 55%, and the average LCID price target of $3.22 implies an upside potential of 5.2% from current levels.
