Lucid Group Stock Price and Forecast: Is LCID, TSLA or RIVN the better EV stock?
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get all exclusive analysis, access our analysis and get Gold and signals alerts
Elevate your trading Journey.
UPGRADE- Lucid Group suffers a heavy 7% fall on Friday.
- Inflation concerns hit high growth tech names hard.
- Rivian falls over 9% and Tesla down 5% on Friday.
Electric vehicle stocks continue to suffer in the current hawkish environment. The inflation data on Thursday has only hardened this year's stance toward high growth tech stocks, and the situation is likely to get worse as the first quarter progresses. Tesla (TSLA) remains our pick due to its market-leading position and production capabilities. Giga factories in Shanghai and Berlin will see to that.
However, we still expect TSLA to underperform the index for at least the rest of this quarter. We would not currently favour owning Rivian (RIVN), Lucid (LCID) or Tesla. From a trading perspective, high growth tech and EV is not the sector to be in for this quarter. There may be pullbacks and opportunities for quick entries and exits, which we will try to identify, but the overall theme remains bearish.
Lucid Group Stock News
Lucid is due to release its earnings next week, but the date has yet to be confirmed by the company though the release is imminent. Production and sales will be the key metrics and could give the stock a short-term boost. Investors will focus more and more on the rate of cash burn now. Input costs are surging and so too are labour costs globally.
Note this quarter that for the most part earnings have beaten analyst estimates nearly 70% or more, but stock prices are reacting less and less to earnings beats. What is more and more important is the guidance given. If Lucid fails to give guidance, the stock should fall. If guidance is disappointing, the stock should fall. Only confident guidance will help Lucid. The environment has turned against the sector, so the risk-reward is to the downside in our view.
Lucid Group Stock Forecast
The move through the volume gap we identified has now more or less played out as we predicted. Now Lucid finds itself in a high volume zone, so this should at least slow the losses. Below $22, volume thins out again. We have a weak Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD). A break of $25.61 and it is likely to reach $22.25 fairly soon after. That level is huge to hold as below volume again drys up, meaning $16 is the next target. Breaking the $30.85 high from February 1 confirms the $25.61 bottom and ends the bearish trend.
Lucid Group (LCID) chart, daily
The author is long NIO.
Like this article? Help us with some feedback by answering this survey:
- Lucid Group suffers a heavy 7% fall on Friday.
- Inflation concerns hit high growth tech names hard.
- Rivian falls over 9% and Tesla down 5% on Friday.
Electric vehicle stocks continue to suffer in the current hawkish environment. The inflation data on Thursday has only hardened this year's stance toward high growth tech stocks, and the situation is likely to get worse as the first quarter progresses. Tesla (TSLA) remains our pick due to its market-leading position and production capabilities. Giga factories in Shanghai and Berlin will see to that.
However, we still expect TSLA to underperform the index for at least the rest of this quarter. We would not currently favour owning Rivian (RIVN), Lucid (LCID) or Tesla. From a trading perspective, high growth tech and EV is not the sector to be in for this quarter. There may be pullbacks and opportunities for quick entries and exits, which we will try to identify, but the overall theme remains bearish.
Lucid Group Stock News
Lucid is due to release its earnings next week, but the date has yet to be confirmed by the company though the release is imminent. Production and sales will be the key metrics and could give the stock a short-term boost. Investors will focus more and more on the rate of cash burn now. Input costs are surging and so too are labour costs globally.
Note this quarter that for the most part earnings have beaten analyst estimates nearly 70% or more, but stock prices are reacting less and less to earnings beats. What is more and more important is the guidance given. If Lucid fails to give guidance, the stock should fall. If guidance is disappointing, the stock should fall. Only confident guidance will help Lucid. The environment has turned against the sector, so the risk-reward is to the downside in our view.
Lucid Group Stock Forecast
The move through the volume gap we identified has now more or less played out as we predicted. Now Lucid finds itself in a high volume zone, so this should at least slow the losses. Below $22, volume thins out again. We have a weak Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD). A break of $25.61 and it is likely to reach $22.25 fairly soon after. That level is huge to hold as below volume again drys up, meaning $16 is the next target. Breaking the $30.85 high from February 1 confirms the $25.61 bottom and ends the bearish trend.
Lucid Group (LCID) chart, daily
The author is long NIO.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.