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.
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.
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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
