- NASDAQ:LCID fell by 5.5% on Tuesday as the broader markets tumbled yet again.
- Lucid investors are digesting Morgan Stanley’s price target for the stock.
- It was another day of mediocre gains and mostly losses for the electric vehicle sector.
Update: Lucid Motors (LCID) stock is trading higher in Wednesday's premarket as Bank of America is out with coverage on the stock. The bank has initiated coverage with a Buy rating and a $30 price target. LCID stock is trading over 2% higher in the premarket.
NASDAQ:LCID drove lower on Tuesday, as the stock continues to languish in range ahead of the Production Preview Week event at the end of the month. On Tuesday, shares of Lucid fell by 5.5% and closed the day at $18.95. It was a sort of delayed reaction for Lucid following yesterday’s release of Morgan Stanley’s initial coverage of the stock. Lucid continues to struggle to hold support, and is trading well below both the key 50-day and 200-day moving averages, signalling that the stock has been trading lower.
The initial coverage from noted electric vehicle analyst Adam Jonas clearly did not sit well with Lucid investors on Tuesday. Jonas initiated an underweight rating with a bearish price target of $12.00. Lucid is one of the more popular stocks amongst retail investors so many took to social media in outrage. Jonas noted that the premium EV sector is not as large as Lucid believes it is, and that the company will have difficulty in general competing with more established brands like Tesla (NASDAQ:TSLA). The analyst also spoke about Lucid’s $31 billion valuation, and that the most bullish possible outcomes for the company are already baked into the price.
LCID stock price forecast
Lucid wasn’t the only EV stock to be trading lower on Tuesday, as the broader markets showed continued volatility during September OPEX week. Tesla managed a last second comeback at the closing bell to finish 0.20% higher, while Nio (NYSE:NIO) closed the day lower by 1.30%. Ford (NYSE:F) and General Motors (NYSE:GM) also finished lower on Tuesday, as all three major indices declined during the session.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.