Shares of electric-vehicle startup Lucid Group, Inc. (NASDAQ:LCID) are sliding in premarket trading on Monday.
The downward spiral came in response to an announcement from Nasdaq that as part of the annual reconstitution of the Nasdaq 100 Index, six companies, including Lucid, will be eased out of the index, effective before the market opens next Monday.
The index membership depends on criteria such as market capitalization and volume, among other things.
Lucid has struggled with production ramp and weak deliveries and the company’s stock price has fallen from a post-IPO high of about $58 to under $5.
Removal from the index could spell trouble for the ailing stock as funds that hold portfolios mirroring the index could drop it out of their holding.
In premarket trading on Monday, the stock fell 6.43% to $4.43, according to Benzinga Pro data. It traded just shy of the all-time lows of $3.775 hit on November 8.
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