When does Lucid hit $20?

  • Lucid Group shares continue to decline after hitting our target of $30.
  • LCID stock looks poised for more losses and could hit $20.
  • LCID shares are down almost 30% since the start of the year.

UPDATE: LCID shares briefly dipped below $26 at the start of Tuesday’s session, but since then the shares have rallied towards Monday’s close. At the moment, they are up 0.3% at $27.07. Shares fell to an intraday low of $25.90 on Tuesday and are down 29% year-to-date.

Shares of Lucid Groups (LCID) continue to slide as the high-growth electric vehicle sector experiences increasing headwinds. Lucid is expected to release earnings in a few weeks, but as far as we know, no final date has been set for the release. However, the report will have to be explosive to transform sentiment towards the stock and the sector. Lucid hasn’t had a great start to the year and things are only getting worse.

Yields continued to rally again on Monday as more hawkish comments come out of the wires of central bankers. Higher yields are making investors increasingly nervous about their holdings of high-growth stocks. Tesla, the industry leader, is also suffering from its own headwinds, which isn’t going to help Lucid.

Lucid Group Stock News

Lucid suffered as high-growth tech stocks continue to fall out of favor. It also suffers from comparison with some of China’s EV manufacturers. NIO, XPeng (XPEV) and Li Auto (LI) all released strong shipment data last month, which showed continued strong year-on-year growth. The names of Chinese electric vehicles, however, have been sanctioned due to regulatory concerns about Chinese technology and growth stocks. However, on a relative valuation basis, the two best-known new US electric vehicle stocks of 2021, Lucid and Rivian, fall short of Chinese names. This may deter potential investors from the sector or LCID or RIVN stocks.

Lucid Group Inventory Forecast

We had identified $30 as a likely target once momentum began to wane and yields began to rise. We don’t see this situation changing anytime soon and note that yields and sentiment continue to shift against high growth names. The LCID has broken below the 200-day moving average at $29.17, and the 9-day moving average is about to cross below the 200-day moving average. This is strongly negative and should lead to more losses. The only bright spot is the amount of historical volume at current levels. the control point is $24.56: see the large volume profile bars on the chart below. Volume usually means balance, so any additional losses are likely to be more stable.

Lucid Chart (LCID), Daily


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Karen J. Nelson