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Hudson Labs predicted Lucid's (LCID) stock collapse

Hudson Labs provides machine-learned forensic risk assessment tools and advanced SEC filing navigation. Our proprietary risk scores and red flags predict price collapse. Learn more on our Research & White Papers page.

Hudson Labs started predicting a crisis at Lucid Group (LCID) as early as November 2021. At that time Lucid's stock price had reached an all time high with a price per share over $50. Since then Lucid's stock price has plunged to under $9, as of December, 2022, a drop greater than 80%. In fact, Lucid Group was one of the worst performing stocks in the Russell 2000.

$LCID's  price collapse

In addition to Lucid’s high Hudson Labs risk score (top 7%), we flagged severe red flags to our subscribers.

Red flags at Lucid Group flagged by Hudson Labs algorithms during 2021 included:

  • Accounting adjustments and material weaknesses in internal controls.

  • Related party transactions, including an agreement with a related entity (Public Investment Fund) that would involve a $1M reimbursement for a talent development program. Learn more about the risks of related party transactions in our Red Flag Guide.

  • A regulatory subpoena from the Securities Exchange Commission (received in December 2021).

Lucid went public via a Special Purpose Acquisition Company (SPAC) merger. Quite a few of these types of companies have experienced issues later in their lives. We wrote a number of articles about issues at SPACs. Find "Non-timely filings increase by 40%+ in 2022, fueled by SPACs", “They’re finding themselves in situations where they’re not ready for prime time", "Withum and Marcum audited over 78% of all SPACs since 2020" and more on our blog.


The Hudson Labs team wrote a Twitter thread in November 2021, detailing many red flags at Lucid. This thread was at the stock price's peak and before the SEC investigation had been disclosed.

Bedrock AI tweet of red flags at Lucid Group

A snapshot of Hudson Labs' machine-learned red flags from 2021, as shown on our web platform:

 red flags on Bedrock's web platform



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