Lucid, Boeing, and Plug Power struggle as financial woes deepen in 2025
Three major US companies are facing serious financial struggles. Lucid Group, the electric vehicle maker, has announced plans to raise $975 million through convertible notes, a move that could further weaken its stock on the stock market. Meanwhile, Boeing continues to lose billions annually, while Plug Power battles persistent losses and unmet financial promises.
Lucid Group’s financial troubles have deepened. Its stock has plummeted 65% from its SPAC IPO price, forcing a 1-for-10 reverse split to avoid delisting. The company is now burning through cash at a rate of $3.4 billion per year, leaving it with just $2.3 billion in reserves against $2.8 billion in debt. The latest $975 million debt offering will likely dilute existing shareholders and push the stock even lower on the stock market.
Boeing’s losses are mounting, with the company haemorrhaging around $8 billion annually. Analysts expect it to miss financial targets for the 2025 fiscal year, despite projections of 32% revenue growth. The aerospace giant also faces stiff competition from Airbus and China’s COMAC in the civilian aircraft market, while its defence and space divisions struggle to perform. Plug Power has a long history of failing to meet financial expectations. The company reported negative revenue in 2020 and returned to EBITDA losses in 2021. Critics point to repeated instances of overpromising on earnings and underdelivering, raising doubts about its future stability.
All three companies are under pressure to turn their finances around. Lucid Group’s debt sale may provide short-term relief but risks further stock declines on the stock market. Boeing’s losses and competitive challenges show no immediate signs of easing. Plug Power, meanwhile, continues to grapple with a track record of financial shortfalls and unmet targets.
