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

NASDAQ:LCID fell by 9.00% during Wednesday’s trading session.
Bank of America doubles its price target for Lucid to $60.00.
Tesla stock shrugged off Elon’s latest drama and rebounded on Wednesday.

Stocks Reporter FXStreet

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.

LUCID motors stock forecast

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.

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