Lucid Motors (LCID) stock surges on Wednesday as the CEO speaks.
Lucid CEO says company on track to meet 2022 production goals.
LCID stock pops over 7% as retail traders pile back in.
Lucid Motors stock (LCID) surged on Thursday as traders piled back into the name after some bullish comments from the CEO Peter Rawlinson. While the comments were bullish the reaction as the session went on may have disappointed some. LCID stock was actually up as high as $28.39 before things calmed slightly, and it settled back to close at $26.28. Still a strong performance, but this fall into the close actually produced a red candle, which we would rather not have in the chart.
Lucid Motors key statistics
Average Wall Street Rating and Price Target
Lucid held an event at its plant in Casa Grande, Arizona, this week, and analysts seem to be impressed. The impetus started earlier this month with Bank of America putting out a bullish rating on the stock with a $30 price target. Added to this was CFRA upping their price target for Lucid by $10 to $35. Citi also began coverage in September with a buy rating and a $38 price target. So for, so bullish!
The event in Casa Grande was for analysts, investors and media. CEO Peter Rawlinson told reporters at the event that production was on track to meet targets for 2022 and 2023 and that it is pushing to deliver 577 vehicles this year. “The balance sheet is okay until the end of next year, so we will not wait until the end of next year to raise money,” the CEO added. Keeping in line with recent comments from Tesla (TSLA) CEO Elon Musk, Peter Rawlinson said he sees the chip shortage easing in a year’s time and that the company was taking steps to help with supply issues. Reportedly, test drives of Lucid vehicles were available at the event, and these are to have gone well, according to online reports. Earlier Lucid (LCID) had said that deliveries are to begin in October and that it has over 13,000 orders for Lucid Air. The Lucid Air Dream Edition was granted certification from the US government with a 520-mile range on September 16, making it the largest range in the electric vehicle sector with Lucid saying the sedan is the longest range authorized by the Environmental Protection Agency(EPA) thus far.
The strong move on Thursday was actually stronger until some selling pressure came into the stock late in the session. We would like to see the long-term trend line broken today as this will break Thursday’s high and put any fears of a potential double-top to sleep. Momentum is now high in the stock, so we would expect that to continue with mentions on social media spiking, see chart from Refinitiv below.
From the daily chart below, Lucid (LCID) stock has still got some volume headwinds with high volume profile bars and the Volume Weighted Average Price (VWAP) sitting at $26.27. This is the highest volume average price since the stock launched. Once above $28.50 though, volume gets thinner, meaning gains should be easier.
FXStreet View: Bullish above $25, the 9-day moving average.
FXStreet Ideas: Buy the dip potential at $22.20 as there is a lot of volume here. Always use stops.