Why Lucid Stock Is Gaining Ground Today
Shares of electric vehicle maker Lucid Group (NASDAQ: LCID) were rising Tuesday as investors regained some optimism about EV stocks generally in the wake of a report that Tesla's recent sales in China were strong. Additionally, investors are betting the Federal Reserve will raise the benchmark federal funds rate by just 25 basis points (0.25 percentage points) at its meeting this week. That would be the same size as the boost it implemented on Feb. 1, but that last hike was its smallest interest rate increase since March 2022.
Lucid's share price was up by 6.9% as of 12:30 p.m. ET.
Lucid -- like many EV stocks -- has fallen pretty hard in the past year as investors have considered how rising interest rates, high inflation, and growing competition will impact the EV market. But investors may have regained some of their enthusiasm for Lucid stock after seeing a new report from China Merchants Bank International showing that Tesla may have had one of its best quarters yet in China.
Source Fool.com
