Lucid Signs Up Timothée Chalamet As Global Brand Ambassador: Retail Terms It A Desperate Cash-Draining Move

EV maker Lucid Group, Inc. (LCID) said on Tuesday that it has signed a multi-year partnership with renowned actor Timothée Chalamet.

Shares of the company traded 7% lower on Tuesday afternoon at the time of writing. Chalamet will be the company’s first-ever Global Brand Ambassador.

On Stocktwits, retail sentiment around Lucid fell from ‘bullish’ to ‘bearish’ over the past 24 hours, while message volume dropped from ‘high’ to ‘normal’ levels.

According to Stocktwits data, retail chatter around Lucid jumped a whopping 213% over the past 24 hours.

A Stocktwits user opined that the company must stem their expenses and show they are narrowing the loss margin and edging towards profitability to drive up the stock.

Another user believes that signing up the actor as the global ambassador is a “desperate cash draining move.”

Chalamet will headline Lucid’s new marketing campaign for its Gravity SUV later this year. Gravity is a full-size three-row SUV and the second Lucid vehicle after the Air sedan.

Earlier this month, Lucid announced that ride-hailing platform Uber Technologies (UBER) will deploy 20,000 or more Gravity vehicles equipped with a level 4 autonomy system on its platform over six years.

Chalamet was first spotted driving a Lucid Air in 2023. Lucid's new campaign starring Chalamet will premiere early this fall, the company said.

Lucid on Monday also notified its shareholders of a special meeting to be held on August 18 to authorize its Board of Directors to effect a reverse stock split of the company's Class A common stock in a ratio of one-for-ten.

Lucid is expected to announce its second-quarter earnings on August 5. The company produced 3,863 vehicles and delivered 3,309 vehicles in the three months through the end of June.

LCID stock is down by about 14% this year and by about 25% over the past 12 months. 

Read also: Eli Lilly’s Cancer Drug Demonstrates Better Effectiveness Than AbbVie’s In Late Stage Trial: Retail Believes In Holding The Stock

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