It's why the US SEC warns, "Penny stocks may trade infrequently - which means that it may be difficult to sell penny stock shares once you have them. Because it may also be difficult to find quotations for penny stocks, they may be impossible to accurately price. Investors in penny stock should be prepared for the possibility that they may lose their whole investment."
Lucid Group Inc. stock has sharply declined to $2.18, marking a drop of 28%, while the S&P 500 has increased by 8%. Over five years, its market cap has plummeted nearly 80% to $6.7 billion, reflecting the struggles of small companies in the challenging U.S. electric vehicle sector, which has seen EV sales decrease by 6.3% this quarter.