What's Going On With Lucid Group Stock?

Lucid Group Inc LCID shares are trading lower Tuesday morning after rallying more than 27% on Monday. Here’s a look at what’s going on.

What To Know: Lucid shares raced higher on Monday alongside several other EV stocks following broader weakness in the sector over the last month.

Tesla shares had been leading EV stocks lower in recent trading sessions after the company turned in a second straight quarter of disappointing financial performance last week. After falling nearly 25% over the last month, Tesla shares saw buyers rush back in on Monday and the stock climbed 4% higher amid a broader recovery among EV names.

Lucid is scheduled to report its fourth-quarter financial results on Feb. 21. Analysts currently anticipate a loss of 29 cents per share on revenue of $179.881 million, according to Benzinga Pro.

Lucid shares also appear to have gotten a lift Monday from a new partnership with Ma'aden Rolling, a subsidiary of the Saudi Arabian Mining Co. In an X post this week, the aluminum panel supplier said it inked an agreement to provide Lucid with aluminum sheets with various specifications for its U.S. factories.

Lucid on Tuesday announced that it appointed Matt Everitt as General Counsel. Everitt will be responsible for overseeing Lucid’s legal affairs globally and for providing strategic legal guidance to support the company’s ambitious growth plans. 

“We are delighted to welcome Matt to Lucid and to California. His impressive legal background, deep understanding of the automotive landscape, and strategic mindset make him the ideal choice to lead our legal department as we accelerate growth in the coming years,” said Peter Rawlinson, CEO and CTO of Lucid.

What’s Ahead For LCID? Equity research analysts typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Lucid, an investor could make an assessment about a stock's long-term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Lucid, the 200-day moving average sits at $5.67, according to Benzinga Pro, which is above the current price of $3.26. For more on charts and trend lines, see a description here.

Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

See Also: General Motors Vrooms Past Q4 Street Expectations, Sees US EV Business Take Off From Second Half 2024

LCID Price Action: Lucid shares closed Monday up 27.2% at $3.37. The stock was down 3.26% at $3.26 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Lucid.