Why EV Stocks Lucid Group, Rivian Automotive, Tesla Are Rallying Friday

Lucid Group Inc LCID shares were ripping Friday and halted on a circuit breaker to the upside in early afternoon trading following rumors circulated by traders the Saudi Public Investment Fund is planning to buy out the remainder of the electric vehicle company. 

Benzinga has contacted the Public Investment Fund for comment on this story.

A Lucid Group spokesman told Benzinga Friday the automaker does not comment on rumors or speculation. 

Rivian Automotive’s RIVN stock traded higher Friday afternoon, trading up more than 7% from Thursday’s close.

Tesla Inc TSLA was also trading higher by about 10% Friday afternoon after reporting strong earnings earlier in the week.

In addition to the strong earnings in the electric vehicle space, the Personal Consumption Expenditure index, one of the Fed’s key measures of inflation, came in cooler than expected Friday morning, and is at its lowest level since October 2021.

This is another sign that inflation is cooling and the Fed may be able to ease its rate hikes at some point this year.

The cooling inflation should be good news for most equities, but especially growth stocks which have been hit the hardest by the Fed’s interest rate hikes. 

LCID, RIVN, TSLA Price Action: At the time of publication, Lucid shares were trading 51.4% higher. Shares of Rivian were up 11.6% and Tesla shares were up 9.8%. 

Photo courtesy of Lucid Group.