LCID Stock News: Lucid Group Inc plummets despite bullish upgrade from Bank of America

NASDAQ:LCID had its single worst day in months on Wednesday, as the stock tanked after the Rivian (NASDAQ:RIVN) IPO debuted on Wednesday, hitting a valuation of $100 billion. Shares of LCID tumbled by 9.00% on Wednesday and closed the tumultuous trading session at $40.75. It was a rocky day all around for the broader markets as growth sectors took a hit following unexpected data that showed inflation is still on the rise. The NASDAQ fell by 1.66% and the Dow Jones shed 240 basis points as all three major indices fell below water for the second straight day.

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The timing was curious for Lucid’s big fall, as Bank of America analyst John Murphy came out with a bullish stock upgrade for the company. Murphy reiterated his buy rating for Lucid and upped the price target from $30 to $60 per share. The outlook would give Lucid a market cap of nearly $100 billion, making it more valuable than both Ford (NYSE:F) and General Motors (NYSE:GM). In fact, Lucid would be the most valuable EV company aside from Tesla (NASDAQ:TSLA) in this scenario. It is a stark contrast to known Lucid bear Morgan Stanley’s Adam Jonas who provided a $12 price target for the stock.

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Another EV company that received an upgrade from Bank of America is Tesla, which rebounded nicely on Wednesday following two straight days of sell-offs. Murphy raised his price target for the EV leader from $1,000 to $1,200, and the market reacted appropriately as the stock climbed by 4.34% during the session. The recent sell-off was due in part to CEO Elon Musk stating that he would be selling off 10% of his stock in the company.