Electric vehicle manufacturer Lucid Motors (NASDAQ: LCID) has officially joined the Nasdaq-100 stock index.
In a press statement, Lucid noted that the enrollment takes effect before the opening of markets on Monday, December 20, 2021. The EV manufacturer joins the index following the listing on the Nasdaq exchange in July.
“We are proud to join the prestigious Nasdaq-100 Index, a recognition of our progress establishing Lucid in the EV market and our future growth strategy. Since our successful public listing on Nasdaq in July, and with customer deliveries of the Lucid Air beginning in October, our differentiated EV technology continues to drive a clear demand for, and confidence in, our products and company,” said Lucid Group’s CFO Sherry House.
LCID stock surges
Following the news, Lucid stock was up about 5.34% ahead of markets opening. The stock continued to gain despite investigations by Securities Exchange Commission over the company’s SPAC-backed reverse merger.
The addition is a significant step in Lucid’s progress towards potentially competing with established manufacturers such as Tesla. Notably, the Nasdaq-100 index plays a crucial role in attracting investors of the top companies outside of the financial sector.
The index comprises the largest non-financial companies listed on the exchange. Worth noting is that there is no minimum requirement for market value; its stocks must have an average daily trading volume of over 200,000 shares to be eligible.
The inclusion does not necessarily result in the stock’s surge but it offers potential benefits such as increased liquidity and a broader investor base due to the passive index funds. Furthermore, the stocks on the index can benefit from increased analyst coverage.