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.
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.
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.
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