Skip to content

Lucid shares slump as worries around EV sector grow

Lucid shares slump as worries around EV sector grow
Dino Kurbegovic

Shares of electric vehicle (EV) startups saw selling pressure on Friday, June 3, after Tesla (NASDAQ: TSLA) CEO Elon Musk commented on job cuts. Apparently, Tesla’s CEO has a ‘super bad’ feeling about the economy and is looking to cut 10% of the workforce. 

Thus, on Friday, among the notable decliners were shares of EV manufacturer Lucid Group (NASDAQ: LCID), whose shares lost over 6% on the day.   

In the meanwhile, experts are warning that Musk’s statements may have an influence on expectations for growth and value throughout the EV industry. This is in spite of the positive picture coming out of China, as the nation eases its covid lockdowns.

LCID chart and analysis 

At the same time, shares of LCID are still trading between the 20-day and 50-day Simple Moving Averages (SMA), on lower than usual trading volume. If shares dip below the 20-day SMA, more pain could be expected with the support line possibly around the $15 mark. 

LCID 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

Comparably, analysts deem the shares a moderate buy, seeing them trading at the average price for the next 12 months at $31, a potential increase of 66.04% from the current trading price of $18.67. 

Wall Street LCID analysts’ price targets for LCID. Source: TipRanks

Exposure to the company

North America’s biggest electric-vehicle festival, Electrify expo, was in Long Beach from June 3 to June 5, where Lucid was one of the more prominent guests.

At the expo, the company showcased its Lucid Air Grand Touring vehicle and explained its vision for the luxury EV with the longest range. 

In spite of the fact that they have only just announced an increase in costs for their models, the demand seems to be healthy and continuing to expand.

Supply chain issues will likely be a bottleneck for the entire EV market; yet, if the company can find a workaround and honor deliveries, the shares might trend back up. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Services

IMPORTANT NOTICE

Finbold is a news and information website. This Site may contain sponsored content, advertisements, and third-party materials, for which Finbold expressly disclaims any liability.

RISK WARNING: Cryptocurrencies are high-risk investments and you should not expect to be protected if something goes wrong. Don’t invest unless you’re prepared to lose all the money you invest. (Click here to learn more about cryptocurrency risks.)

By accessing this Site, you acknowledge that you understand these risks and that Finbold bears no responsibility for any losses, damages, or consequences resulting from your use of the Site or reliance on its content. Click here to learn more.