LCID Stock News: Lucid Group Inc gains as rising energy prices boost EV interest

NASDAQ:LCID rebounded slightly to start the week as the company looks to move forward from a disappointing earnings report last week. Shares of LCID edged higher by 2.39% and closed the trading session at $23.17. Electric vehicle makers were in the spotlight again as skyhigh oil prices stemming from the situation in Ukraine, have piqued investor interest. The overnight prices of oil hit $130 per barrel on Monday which represented a thirteen-year high for the commodity. The Dow Jones plummeted by 797 basis points, the NASDAQ fell into bear market territory, and the S&P 500 had its worst-performing session since October of 2020.

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While many of us were focussed on the drop in Lucid’s delivery figures for 2022, the company also made another intriguing announcement at its earnings call. Construction on Lucid’s second plant based in Saudi Arabia is set to begin at some point in the first half of 2022. This accelerates Lucid’s international expansion and likely makes Saudi Arabia one of its main consumer markets when the plant is ready. With soaring oil prices, we could see a rise in demand for companies like Lucid. Still, after such a dramatic cut in deliveries for this year, Lucid will need more orders to sustain two production plants.

Lucid Motors stock forecast

Dan Ives, a Wedbush analyst and noted Tesla (NASDAQ:TSLA) bull, is anticipating that the newly opened Berlin GigaFactory will be a difference-maker for the company. Ives refers to the red tape that Tesla had to get through as a major overhang for the stock, but now that it is open, he expects the stock to rise. Wedbush believes Tesla will hit 2 million vehicle deliveries in 2022, and Ives has maintained his price target for the stock at $1,400.

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