TLDR:
- Lucid stock jumped over 10% following rumors about Trump potentially preserving EV tax credits
- Trading volume increased 97% above average, with 150 million shares traded
- Rival EV maker Rivian also gained 11%, boosted by a new Buy rating
- Lucid recently started production of its new Gravity SUV model
- The company will participate in Nasdaq’s Investor Conference on December 11
Lucid Group’s stock price rose sharply by 10% on December 9, 2024, reaching $2.30 per share amid heavy trading volume and market speculation about the future of electric vehicle tax credits under the incoming Trump administration.
Trading activity was notably intense, with approximately 150.3 million shares changing hands during mid-day trading, representing a 97% increase from the average daily volume of 76.1 million shares.
The rally was primarily driven by market rumors suggesting President-elect Donald Trump might reconsider his previous stance on eliminating EV tax credits, although Lucid’s luxury vehicles are priced above the eligibility threshold for current tax credit programs.
Other EV manufacturers also benefited from the market optimism, with Rivian seeing an 11% increase in its stock price. Rivian received additional support from Benchmark analyst Mickey Legg, who issued a Buy rating with an $18 price target.
Lucid’s CEO Peter Rawlinson announced the start of production for the company’s second vehicle model, the Gravity SUV, adding to positive sentiment around the stock. The Gravity joins Lucid’s existing Air sedan in the company’s vehicle lineup.
The company’s market capitalization stands at approximately $7.7 billion, roughly half that of rival Rivian’s $15 billion valuation.
Institutional investors have shown recent interest in Lucid, with several hedge funds adjusting their positions. Notable among these was the Public Investment Fund’s purchase of 374,717,927 shares at $2.59 per share.
Current analyst coverage of Lucid remains mixed, with one buy rating, seven hold ratings, and one sell rating. The average price target stands at $3.16 per share.
The company maintains solid liquidity ratios, with a current ratio of 3.71 and a quick ratio of 3.26, though it carries a debt-to-equity ratio of 0.77.
Lucid’s stock has experienced downward pressure in recent months, with its 50-day simple moving average at $2.54 and its 200-day simple moving average at $3.00.
The company plans to provide further updates during its scheduled appearance at the Nasdaq Investor Conference in London on December 11, where executives will participate in a fireside chat.
Trading data shows the stock had previously closed at $2.09 before Monday’s rally, which saw it trade as high as $2.33 during the session.
Lucid continues to operate its direct-to-consumer sales model through its retail network and online platform, including Lucid Financial Services.
The company maintains its focus on developing and manufacturing electric vehicles, powertrains, and battery systems, with proprietary software development handled in-house.
Insiders maintain substantial control over the company, owning 61.26% of outstanding shares, while institutional investors hold approximately 75.17% of the stock.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
