What In The World Is Going On With Lordstown Motors (RIDE) Stock

Lordstown Motors Corp RIDE shares are trading higher by 54.17% to $6.49 Friday morning, despite a lack of company-specific news. The stock is rising after the Fed paused rate hikes but indicated it sees two more 25-bps hikes this year.

Several electric vehicle (EV) companies with high short interest are experiencing significant stock rallies, driven by ongoing discussions and trends on social media platforms throughout the week.

When the Fed pauses interest rate hikes, it can lead to lower borrowing costs for companies. As an electric vehicle maker, Lordstown may require significant capital for research and development, manufacturing and expansion. Lower borrowing costs make it more affordable for the company to access capital and fund its operations.

Also, when interest rates are lower, it can stimulate consumer spending. Lower borrowing costs for consumers make it easier for them to purchase big-ticket items like electric vehicles. This increased demand can positively impact Lordstown's sales and revenue.

See Also: 'No More Fed Hikes!' Economist Declares End Of Inflation Frenzy

According to data from Benzinga Pro, RIDE has a 52-week high of $55.92 and a 52-week low of $2.90.