Lucid Stock Gains As Orders From Former Tesla Owners Surge: What's Going On?

Lucid Group Inc. LCID shares are moving higher Tuesday. The stock appears to be rising on continued momentum following bullish commentary from the company’s CEO.

What To Know: Lucid shares are trading higher on Tuesday after rising throughout Monday’s session. The gains come after interim CEO Marc Winteroff highlighted a sharp increase in orders from former Tesla Inc TSLA owners.

Winteroff reportedly said that 50% of new orders in the past two months have come from ex-Tesla customers. Tesla owners have “always” been a source of new customers for Lucid, but more owners have been looking to make a change in recent months, he explained.

Winteroff attributed the surge in demand from former Tesla owners to negative sentiment surrounding Tesla CEO Elon Musk, citing his recent political involvement and growing frustration among Tesla owners.

Reports indicate that some Tesla property has been vandalized in response to Musk's political ties, adding to concerns about Tesla's brand perception. The shift in customer sentiment appears to be benefiting Lucid.

Lucid shares have been trending higher since the company reported better-than-expected fourth-quarter earnings results at the end of February. The company said it produced 3,386 vehicles and delivered 3,099 in its most recent quarter. Lucid set a production target of approximately 20,000 vehicles for 2025.

LCID Price Action: Lucid shares were up 3.51% at $2.50 at the time of publication Tuesday, according to Benzinga Pro.