Lucid Group Inc. (NASDAQ: LCID) is likely to have an impact on the upcoming interest rates hike. The prominent American electric vehicle manufacturer is already struggling with several issues. These were making LCID stock prices tremble and now given the interest rate hike of the Federal Reserves soon, the worries are likely to get worse.
Lucid (LCID) Stock Price Movement
Lucid stock price has clearly been struggling throughout the year and currently it is trading at its yearly low. However, the volume remained significant during the whole time.
Currently the volume figure stood at 29.09 million with Lucid stock trading at 9.43 USD. The stock price witnessed a drop of more than 75% since the start of this year. For context, the tech-focused NASDAQ is in good shape with 0.55% up YTD.
Bad Performance Brings Pessimism
Many analysts put the electric vehicle manufacturer stock in an overvalued category. Company’s performance in several past months was not overwhelming. An analyst stated it delivered only 60% of the overall produced vehicle this year. In addition, the EV reservations were also on decline. This clearly indicates the demand for Lucid was not lucrative in the market.
Initially the company had a target to produce 20,000 vehicles but now it seems to produce up to 7,000 EVs only. It is evident that Lucid has a marketing issue as it remained out of the mainstream discussions most of the time, even in the EV oriented discussions.
However, the market capitalization of the automotive company stood at 16.5 million USD at the time of writing.
Outlook Driven Optimism Remained with Lucid Stock
Lucid stock holds the potential of breakout given the company’s future outlook. And the current price around 10 USD is at a heavy discount. Optimist analysts think of it as a preferable stock for the upcoming year.
The company has the reservations of 34,000 cars already showcasing the increasing demand ahead. Moreover, the elimination of supply chain and production issues leads the company to make a strong foothold in the market. With the new installed production system, the company would be able to produce about 34,000 EVs per year.
Expansion will also come as positive for the company as it is seeking Europe and Saudi Arabia. In addition, the government in the latter has ordered a massive 100,000 EVs to Lucid, to be delivered by the end of this decade. The company’s portfolio was already good and the future outlook holds a potential to bring the company to a much better place.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/12/06/lucid-lcid-stock-needs-your-attention/