Why Shares of Lucid and Nio Sank Today, While an EV Start-Up Stock Jumped

The tide has turned against fast-growing tech stocks in general, and electric vehicle (EV) stocks in particular. The stocks of Lucid Group (NASDAQ: LCID) and Nio (NYSE: NIO) are each down between 20% and 30% since the start of December 2021. And that trend continued today.

As of 1:50 p.m. ET, shares of Lucid and Nio were down 4.7% and 2.2%, respectively. But Israel-based EV start-up Ree Automotive (NASDAQ: REE) shares were up 6.8% after popping more than 11% in earlier trading.

While shares have been trending down with the tech market recently, Lucid and Nio may be getting affected a bit by Tesla right now. The EV leader reported unexpectedly high production and delivery numbers in the fourth quarter, and investors seem to be acknowledging the hill smaller EV names will have to climb in trying to catch up. But Lucid also is having to address some customer complaints right out of the gate, while Ree is generating some excitement for its shares with a new EV platform displayed at the Las Vegas Consumer Electronics Show (CES).

Source Fool.com