Lucid Group Inc LCID shares are trading lower by 17.5% to $4.26 over the trailing five sessions. The stock has fallen this week due to an overall downturn in the EV industry, driven by Tesla Inc's underwhelming third-quarter financial performance. Growth stocks have also been negatively affected in recent sessions due to an increase in Treasury yields.
Lucid Group also saw its shares decline after reporting its third-quarter 2023 production and delivery figures. The company produced 1,550 vehicles in the quarter and had 700 more in transit to Saudi Arabia for final assembly. They delivered a total of 1,457 vehicles during the same period.
See Also: Lucid Group To Unveil Gravity SUV At LA Auto Show Next Month, Promises Game-Changing Features
Why Rising Treasury Yields Matter
When Treasury yields rise, it often indicates that the cost of borrowing for businesses and consumers could also increase. Higher interest rates can impact the attractiveness of financing for companies looking to fund expansion or innovation. This, in turn, can affect their future growth prospects.
Rising Treasury yields can also make fixed-income investments, such as bonds, more appealing to investors compared to stocks. This is because higher yields on bonds can provide a relatively safer and more predictable income stream, which can be particularly attractive during periods of economic uncertainty or rising interest rates.
As investors shift some of their capital towards bonds, it can reduce demand for stocks, including those in the EV sector, putting downward pressure on stock prices.
According to data from Benzinga Pro, LCID has a 52-week high of $17.81 and a 52-week low of $4.25.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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