Despite being down 16.63% since 2024 started, Lucid (NASDAQ: LCID) stock has seen a strong recovery over the recent period.
Overall, in the past month, LCID shares added 33.08% to their value, reaching a price of $3.46 at the time of writing, after a 5.49% gain on July 25.
So, what exactly drove this surge in Lucid stock over the previous period?
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Fundamentals had a part in LCID stock growth
On July 8, Lucid Group’s shares surged following the company’s second-quarter delivery report. The California-based electric vehicle manufacturer achieved 2,394 EV deliveries by June 30, reflecting a robust 70.5% year-over-year increase.
Although production saw a slight dip of 2.9% to 2,110 EVs, this reduction might mitigate concerns about potential oversupply amid cooling demand.
Since reaching a record low of $2.38 on April 22, LCID stock has surged by up to 66.18%, signaling possible recovery for the company and the broader electric vehicle sector.
Important developments in the production of Lucid
Lucid showcased important developments across its production line by announcing the 2.30 software update on July 23. The update is aimed at increasing customer experience and vehicle performance. Nick Twork, the newly appointed Vice President of communications, made the announcement.
Furthermore, Lucid announced that its Air Pure is the most energy-efficient production vehicle ever made, boasting an impressive 420 miles of EPA-estimated range from an 84 kWh battery pack. It can travel 5.0 miles per kilowatt hour of energy and achieves the highest efficiency rating ever for an EV at 146 MPGe.
After announcing the new Gravity SUV, Lucid provided an exclusive video showcasing the features of its upcoming EV model, which boasts increased energy efficiency and drivers’ experience.
Institutional investors are increasing their LCID stock holdings
In the recent period, LCID stock has experienced an increase in the purchase of its shares, mostly by institutional holders such as the custody banking giant BNY Mellon, which reported a new filing with the SEC on July 26, indicating the acquisition of 581,082 shares in Lucid Motors.
By the end of the second quarter, BNY Mellon held a total of 2,681,982 shares in the EV maker, valued at nearly $7 million. This represents a 27.66% increase in their stake in the U.S. manufacturer during the quarter.
This comes after other institutional holders, such as Vanguard, reported holding substantial amounts of LCID shares, approximately 83.7 million shares.
The Public Investment Fund (PIF) remains the largest stakeholder, with more than 59.58% of outstanding Lucid shares owned.
The newest supply deal is fueling the most recent growth in LCID stock
Lucid Motors and Graphite One (CVE: GPH) signed a non-binding supply agreement for synthetic anode active materials on July 25, aiming to source more locally for their BEV supply chain.
GPH shares recorded an increase of 31% in the latest trading session after the announcement.
This move is part of Lucid’s strategy to reduce costs and potentially qualify for Federal tax credits. The agreement, described as a pioneering collaboration, highlights Lucid’s focus on localizing its supply chain and, therefore, decreasing costs, intending to increase its profitability.
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