Connect with us

Hi, what are you looking for?


Lucid stock price analysis: There’s an ill wind blowing

Lucid shares slip 15% on Q2 report

Lucid (NASDAQ: LCID) stock price is in a recovery mode as global stocks rebound. It has surged to a high of $8.45, which was the highest level since December 13th. The shares have surged by more than 33% from the lowest point in 2023.

EVs are in trouble

Lucid is a leading EV company that manufactures and sells premium EV sedans. The company sells expensive EV cars that start at about $138k. It aims to follow the Tesla model of starting expensive cars and then use these funds to build cheaper vehicles. The company is heavily backed by Saudi Arabia.

Despite the recent Lucid stock price rally, there is an ill wind blowing in the EV industry. Last week, Tesla announced that it was slashing its prices in the United States. It had already slashed prices in China. And on Tuesday, Li Auto announced that it will slash its vehicle prices in China.

EVs and other auto companies are facing significant challenges. First, some analysts believe that Lucid will continue being a niche product in the long term. While the cars are attractive, most Americans prefer semi trucks and SUVs.

Second, the price is significantly higher than what most Americans would want. The average car price in the US starts at $48,000. With interest rates at an elevated level, Lucid will struggle to attract more customers. Unlike premium car companies like Ferrari, Lucid’s customers are more concerned about prices.

Third, broadly, there are concerns about whether EVs are the future. For one, there are concerns about range and the availability of enough power to charge all these EVs. In the past few months, states like Tennesse, California, and Texas asked their residents to reduce their power usage. I wonder what would happen if everyone was charging their EVs.

Most importantly, there are concerns about charging speed. The fastest you can charge a Lucid EV is 35 minutes compared to less than 5 minutes it takes to fill a tank.

Lucid stock price forecast

Lucid stock

So, is it safe to buy the LCID stock? The daily chart shows that the Lucid stock price has been in a strong bullish trend in the past few days. It has moved above the 50-day moving average while the Relative Strength Index (RSI) moved close to the overbought level. It also moved above the key resistance level at $7.

Therefore, I suspect that the Lucid share price will likely resume the bearish trend as sellers target the key support at $5.

The post Lucid stock price analysis: There’s an ill wind blowing appeared first on Invezz.

You May Also Like


Mimiq, Inc is announcing today the launch of their new product, Mimiq Track, at CES as part of their latest product line to operate...


Bayerische Motoren Werke AG (ETR: BMW) shares have advanced more than 15% since the beginning of October 2022, and the current share price stands...

Editor's Pick

Real gross domestic product rose at a revised 3.2 percent annualized rate in the third quarter versus a 0.6 percent rate of decline in...

Editor's Pick

For years the North Korean playbook was obvious to the world. The Democratic People’s Republic of Korea wanted to be the center of attention....

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023