Lucid (LCID) falls in pre-market after announcing 2k unit recall

Shares of Lucid Group (NASDAQ: LCID) are down more than 3% in pre-market trading Friday morning after the company announced that they will be recalling more than 2,000 of its Air luxury electric sedans.

According to the recall notice, early versions of the Air sedan, made between 2022 and 2023, may have faulty high voltage coolant heaters (HVCH), which are responsible for supplying warm air to heat the cabin and defrosting.

"Lack of defrost capability poses a safety risk due to a possibility of obstructed driver vision," Lucid said in a recall report on Friday. The HVCH were supplied by German company Webasto AG.

Lucid Motors plans to release an over-the-air software update later this month to detect and alert drivers in the event of a component failure.

The electric vehicle maker stated that Lucid service centers will be responsible for replacing any faulty HVCHs parts.

Lucid delivered a total of 6,001 units in 2023, following a delivery of 4,369 units in 2022.

Shares of LCID are down 2.45% in pre-market trading Friday morning.

By Michael Elkins | [email protected]

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