Skip to content

Why Lucid stock price is soaring

Why Lucid stock price is soaring

After experiencing a significant total fall in the last 30 days and even showing the dreaded death cross indicator in its chart, Lucid Motors (NASDAQ: LCID) stock suddenly entered a significant rally on Monday, November 18.

Specifically, though the company is 16.08% down in the one-month chart and 7.75% down in the seven-day time frame, it rallied 6.47% during the last session to its latest closing price of $2.14.

LCID stock 1-day price chart with the Tuesday pre-market. Source: Google

The very start of the Tuesday pre-market indicates the uptrend might persist for some time, though the initial 0.47% move is hardly decisive.

What is driving the Lucid stock rally

Overall, the rally is indecisive, as there is no obvious driver behind the upsurge. In fact, the biggest discernable recent event pertaining to Lucid’s stock was that BlackRock (NYSE: BLK) significantly reduced its position in the company.

 It might be that LCID shares moved higher simply as a form of upward correction, perhaps as investor disappointment with the company’s new model schedule exhausted its momentum.

Several comments from Lucid CEO Peter Rawlinson may have given traders some confidence regarding the electric vehicle (EV) maker. 

Specifically, though the executive may have disappointed some with his insistence there will be no low-cost Lucid EVs as the mass market ‘sucks,’ he pointed out that his firm’s technological achievements will help the broader drive toward a $20,000 electric car.

Simultaneously, Rawlinson implied a likeness between his company and a traditional luxury vehicle manufacturer, Porsche (ETR: PAH3), calling it one of the most profitable car makers in the industry.

Speaking about Donald Trump’s victory and the expected EV tax credit cuts, Peter Rawlinson described Lucid Motors as the industry’s most immune name to adverse policy change while also opining that the company took technological leadership away from Tesla (NASDAQ: TSLA).

Furthermore, the CEO stated that the TSLA stock rally is more a result of the Trump-Musk political alliance than of any particular merit of Tesla.

What is next for LCID stock

Finally, it is worth pointing out that investors are not guaranteed to have gained the confidence to drive LCID shares nearly 7% from Rawlinson’s comments alone – or from Rawlinson’s comments at all.

If the ongoing Lucid stock rally proves short-lived, it would hardly come as a surprise as the EV maker experienced numerous brief, intense surges – albeit generally on news such as delivery forecast beats – only to swiftly run out of steam and settle back into the trend that ensured LCID is 78.36% down from its initial public offering (IPO) price.

Featured image via Shutterstock

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.