Is Lucid Stock a Buy After Today's Bounce?
There were some big news items making the rounds in the electric vehicle (EV) sector this week, and several stocks have been volatile as a result. Luxury EV maker Lucid Group (NASDAQ: LCID) is one of them.
Lucid stock has dropped by about 13% so far this week, even when factoring in its bounce Friday morning. That's because another EV start-up got a big upgrade. Analyst Alexander Potter at Piper Sandler moved Rivian Automotive shares from a hold rating to a buy early Friday, saying the stock could double. Lucid is riding the wave from that upgrade, even as investors are still concerned about the issues that drove the shares lower earlier this week.
On Wednesday, reports emerged that EV start-up Fisker was working with bankruptcy consultants, as it has struggled to gain traction with its early electric vehicle sales. While the company has downplayed its work with those consultants, Fisker did issue a going-concern warning last month. The talk of a potential bankruptcy helped drive down the shares of other money-losing EV makers, including Lucid.
Source Fool.com
