Lucid Group, Inc. LCID is recalling about 5,251 of its 2022-2023 Air luxury sedans due to a software issue that could lead to a power outage, the U.S. National Highway Traffic Safety Administration said. The issue involves the High Voltage Interlock (HVIL) safety mechanism, which can be accidentally activated when the vehicle is in Drive or Reverse, causing a power outage. However, the brakes, steering and displays are said to still be functional.
Lucid addressed the issue with an over-the-air update beginning June 24, 2024. This update modifies HVIL to prevent HV from being removed while the vehicle is in Drive or Reverse. Instead, drivers will receive a Drive System Warning advising them to contact customer service. In Park or Neutral, a Drive System Fault will appear.
Additionally, LCID is recalling 2022-2024 Air sedans due to a defective coolant heater that may not defrost the windshield, affecting 7,506 vehicles. Despite a low failure rate of 1.2%, Lucid has released a software update to alert drivers if the High Voltage Coolant Heater (HVCH) fails. Affected vehicles will receive a new HVCH free of charge. Vehicles produced from February 2023 onwards are not affected as they have an upgraded coolant heater and only 255 vehicles have not yet received the new software.
Lucid isn’t alone in facing software recalls. Tesla also recalled more than 125,000 vehicles in May due to faulty seat belt reminders. Despite this, the LCID power loss issue remains a significant safety concern.
The recall comes amid a strong second-quarter delivery report and the company’s operational restructuring. The automaker delivered 2,394 vehicles in the second quarter of 2024. In May, Lucid warned it had enough liquidity to last just the next 12 months.
Zacks Rank and Top Picks
LCID currently has a Zacks Rank #3 (Hold).
Some better ranked stocks in the auto sector include: Suzuki Motor Company SZKMJ, Renault SA RNLSY and American Axle & Manufacturing Holdings, Inc. AXL, each with a Zacks Rank #1 (Strong Buy) at the moment. You can see The complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for SZKMY’s earnings in 2025 suggests year-on-year growth of 2.09%. The EPS estimates for 2025 and 2026 have improved by 38 cents and 15 cents respectively over the past 60 days.
The Zacks Consensus Estimate for RNLSY’s 2024 revenues and earnings suggests year-over-year growth of 20.78% and 62.43%, respectively. The EPS estimates for 2024 and 2025 have improved 6 cents and 14 cents, respectively, over the past 30 days.
The Zacks Consensus Estimate for AXL’s 2024 revenues and earnings suggests year-over-year growth of 3.05% and 544.44%, respectively. EPS estimates for 2024 have increased 3 cents over the past 60 days. The same for 2025 has increased 20 cents over the past 30 days.
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