What's Going On With Lucid (LCID) Stock

Lucid Group Inc LCID shares are trading lower by 6.95% to $6.90 during Thursday's session overall market weakness. Major indexes are lower following better-than-expected US jobs data, which could raise concerns over further rate hikes. Additionally, Dallas Fed president Logan said more rate hikes are likely necessary.

See Also: What's Going On With Upstart Stock Today

What Happened?

In the latest June FOMC Minutes, the Federal Reserve highlighted that while job market conditions remain tight, there were some signs of supply and demand in the labor market moving toward a better balance.

These new labor market data points arrive just one day before the highly anticipated non-farm payrolls report, which is set to be released Friday morning...Read More

What Else?

Higher interest rates can increase the cost of capital for electric vehicle companies like Lucid Group. This can impact their ability to secure favorable terms for raising funds through debt or equity offerings. Elevated borrowing costs can hamper the company's growth plans and investment in research and development, manufacturing capacity and infrastructure.

Higher interest rates can also influence the cost of raw materials, production equipment and other inputs within the electric vehicle supply chain. If borrowing costs rise for suppliers, it could potentially lead to higher component prices, affecting Lucid Group's manufacturing costs and overall profitability.

According to data from Benzinga Pro, LCID has a 52-week high of $21.78 and a 52-week low of $5.46.