- NASDAQ:LCID dropped by 6.94% as the red-hot EV stock cooled off during Wednesday’s rally.
- Lucid receives its highest price target yet from CFRA Research.
- Tesla charges higher as Musk drops hints of expanding insurance service.
NASDAQ:LCID saw its recent five-day winning streak snapped on Wednesday despite a nice rally from the broader markets. Shares of Lucid fell by 6.94% and closed the trading session at $24.95. It was the first positive session of the week after the global sell off on Monday was followed by a stabilizing, yet still negative day on Tuesday. The electric vehicle sector bounced back most likely in sympathy with a strong day from the NASDAQ that saw Tesla (NASDAQ:TSLA) climb higher by 1.70%. Chinese EV makers also rallied as Nio (NYSE:NIO), XPeng (NYSE:XPEV) , and Li Auto (NASDAQ:LI) all closed Wednesday higher.
It was an interesting day for Lucid to pull back as CFRA Research provided the stock with the most bullish price target yet on Wall Street. CFRA Research reiterated its buy rating for Lucid and upped its price target from $25.00 to $35.00, citing the recent EPA range record for electric vehicles as yet another bullish catalyst. CFRA Research joins Bank of America and CitiGroup as bullish outlooks on the stock, while Morgan Stanley’s Adam Jonas remains one of the only bearish forecasts on Wall Street.
LCID stock price forecast
Meanwhile, Lucid’s main rival Tesla is gearing up to launch its insurance offering for Tesla drivers in Texas by the end of the year. CEO Elon Musk also hinted that the service could be made available in New York by 2022, as Tesla continues to build out its non-vehicle side of its business. Tesla launched its first insurance program for drivers in California back in 2019, but regulatory hurdles have made it difficult to expand to other states until now.
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