Today's surge in Lucid's stock pricing.
Stocks of electric vehicle manufacturer Lucid Group (LCID dropping by 4.13%) witnessed an uptick this morning, seemingly devoid of any company-related news. It seems that Lucid's shares are benefiting from a fresh report revealing a surge in electric vehicle sales in November.
Lucid's stock price soared by 14.2% as of 11:25 a.m. ET.
Switching gears in EV market
Yesterday, Cox Automotive released a new report showing that electric vehicle sales skyrocketed to 116,072 in November, marking a 13.6% increase compared to the same period last year. This jump represented a substantial 10% rise from the previous month and ranked as the second-largest month of electric vehicle sales in 2024.
The recent surge in electric vehicle demand can be attributed to buyers hastily purchasing an electric vehicle while federal tax credits, worth up to $7,500, are still available. However, President-elect Donald Trump has hinted at eliminating these credits, leading some buyers to cash in on the incentives before they disappear.
Although Lucid's vehicles do not qualify for the federal tax credit due to their high price points, the company is currently offering a $7,500 credit to buyers financing their Air sedan and up to $17,500 in credits for leases. Lucid is also providing up to two years of complimentary charging as part of its promotional offerings.
Such incentives are bolstering end-of-year sales growth for the electric vehicle industry, and Lucid's investors are praying that the same trend translates to Lucid's sales figures.
A gradual ramp-up in production
Lucid's management recently disclosed plans to manufacture around 9,000 vehicles for the entire year, representing a modest increase of 6.8% compared to the 8,428 vehicles produced in 2023.
While the overall electric vehicle market is experiencing growth late in this year, Lucid's investors might wish to manage their expectations. Lucid is expected to report its fourth-quarter earnings in mid-February, meaning investors must exercise some patience to see how the company's vehicle sales and production numbers fare.
Today's stock price surge can be interpreted as a positive sentiment among Lucid investors regarding the broader electric vehicle market, rather than specific news regarding Lucid itself.
The positive sentiment among Lucid investors can potentially influence their financial decisions, such as further investing in Lucid Group's stocks. The recent increase in electric vehicle sales, as reported by Cox Automotive, may indicate a profitable future for companies in this sector, including Lucid Group.
