Why Lucid Group Stock Jumped Early Friday

1 week ago 14

Howard Smith, The Motley Fool

Fri, Apr 11, 2025, 10:22 AM 3 min read

It's been a topsy-turvy week successful the banal market. Mostly due to the fact that of tariff quality and the imaginable ramifications to the U.S. and satellite economies. One electrical conveyance (EV) banal jumped contiguous for different reason. Lucid Group (NASDAQ: LCID) raised immoderate caller superior this week, and contiguous announced caller enlargement plans.

Lucid banal surged arsenic overmuch arsenic 5.6% connected Friday earlier losing steam. As of 1:10 p.m. ET Friday, shares were holding connected to a 0.4% summation aft the institution announced plans to bargain a manufacturing works and different assets from bankrupt hydrogen-electric motortruck shaper Nikola.

Lucid has been known for its luxury Air sedan EV. It present is besides offering a luxury SUV exemplary that it hopes volition grow its lawsuit base. Early reviews are affirmative for the Gravity SUV that is present successful Lucid showrooms. The caller EV has 450 miles of range, and is the fastest charging EV extracurricular of China, according to manufacture work InsideEVs. The Gravity is besides equipped to utilize Tesla's immense Supercharger network.

That caller offering is perchance the catalyst Lucid needs to turn income and determination person to profitability. The institution has different plans to grow its marketplace reach, too. A future, lower-priced EV would spell a agelong mode to assistance recognize that. Lucid took a measurement toward expanding measurement by announcing plans contiguous to get Nikola's Arizona manufacturing works pending support by a bankruptcy judge. Lucid's existing works is besides successful Arizona, located betwixt Phoenix and Tucson.

Lucid closed connected a $1.1 cardinal convertible enactment offering this week. While astir of those funds volition beryllium utilized to wage disconnected indebtedness owed adjacent year, that volition escaped up existing superior to money the caller plus purchase.

Along with the manufacturing facility, Lucid plans to connection employment to implicit 300 erstwhile Nikola employees, and the acquisition includes Nikola's erstwhile office and merchandise improvement center.

Investors initially cheered Lucid's caller maturation plans today. But it inactive has an uphill battle, particularly successful uncertain economical times. That helps explicate today's banal movement.

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