Lucid Group (NASDAQ:LCID)
Lucid Stock (NASDAQ:LCID) surged today, and the increase may be attributable to two names more commonly associated with conventional automobiles. Lucid’s stock price climbed as high as 5.3%, and at 3:30 p.m. ET, it was up 2.6%.
What’s the Reason Behind Lucid Stock Gains?
In light of Ford Motor Company’s (F) stock’s recent recovery from a precipitous drop yesterday, investors in Lucid may be betting on F today. As of yesterday, Ford informed its stockholders that it anticipates inflation-related expenditures to rise by another $1 billion during the third quarter. The company also predicted decreased vehicle sales for Lucid because of a lack of parts. When Lucid stock reduced its production volume forecasts due to supply chain problems, knowing it wasn’t alone probably helped ease investor anxiety.
Last month, when reporting its second-quarter results, Lucid reduced its forecast for 2022 production volume. When asked about this, Peter Rawlinson, CEO, and CTO of Lucid said at the time: “To account for the unprecedented difficulties we encountered with our supply chain and logistics, we have adjusted our production forecast. We’ve located the main stumbling blocks and are working to eliminate them.”
After hearing that Ford is experiencing similar problems, perhaps some investors will rethink their decision to sell the company so cheaply after the announcement.
Clearly, the situations at these two automakers couldn’t be more different. The start-up company Lucid Group (NASDAQ:LCID) has revised its production forecast for its luxury electric automobiles for 2018, saying it will make no more than 7,000 units. Yesterday, Ford announced that this quarter will have between 40,000 and 45,000 incomplete automobiles in inventory.
Kelley Blue Book, a car magazine, highlighted Lucid in an article that MarketWatch published today. The author lists Lucid Group (NASDAQ:LCID) vehicles alongside a select group of premium EVs, praising their “excellent performance stats for shaming many of the top sports cars.”
As of the conclusion of the second quarter, Lucid stock had $4.6 billion in cash and investments, giving the company considerable wiggle room if more macro challenges can be resolved. Potential backers are probably placing wagers on its eventual viability today.
Featured Image- Megapixl @ Rafaelhenriquepress