After closing at an all-time record low price yesterday, shares of luxury electric vehicle (EV) maker Lucid Group (NASDAQ: LCID) were bouncing Wednesday morning. With the stock down over 83% in 2022, the recent slide to new lows can probably be explained pretty easily. And opportunistic investors may be taking advantage of the record low price and buying the stock today. Lucid shares popped as much as 7% early today, and held onto a gain of 1.3% at 11 a.m. ET.
The stock has dropped this year thanks to fundamental problems the luxury EV maker has had trying to ramp up production in its first year of operations. It's had to navigate supply chain problems and rising raw material costs at a time when rising interest rates make raising capital more difficult.
That combination has snowballed to a point where investor selling has brought the stock to a new record low probably in a bid to generate capital losses for tax reasons.
Source Fool.com