Lucid Group News and Forecast: LCID falls to $50 in premarket after dropping 7.4% on Monday

Lucid Group's (LCID) stock is down 1.6% to $50.31 in Tuesday's premarket. The electric vehicle (EV) manufacturer seems to be following in the footsteps of Rivian (RIVN), which dropped on Monday after a manufacturing agreement with Ford (F) fell through. LCID dropped 7.4% on Monday as RIVN plummeted 8.2%.

Lucid Group (LCID) News: Still the MotorTrend kid

Lucid investors are still hyped over MotorTrend naming the Lucid Air its 2022 Car of the Year last week. MotorTrend's reasoning jives well with investors' focus on Lucid's developing engineering prowess.

"Were we wowed by the whopping numbers Lucid has been touting recently—up to 1,111 horsepower and 1,390 lb-ft of torque in the Air Dream P edition and up to 520 miles of EPA-official range in the Dream R edition? No," wrote MotorTrend's Frank Markus. "Anyone can buy big numbers by installing giant motors and batteries. Rather, it's the sophisticated way Lucid achieves them in a package that ranks highly in each of our six key criteria that captured our attention and our calipers."

MotorTrend especially noted the Air's ability to charge 300 miles in as little as 20 minutes.

Across the Pacific Ocean, China's Xpeng (XPEV) delivered solid quarterly results on Tuesday. The upstart EV maker delivered more than 25,000 vehicles in the latest quarter, a YoY rise of 199%. Revenues jumped 187% YoY, and Xpeng's gross margin hit 14.4%. The stock increased 5% in Tuesday's premarket.

Last Friday a Wedbush analyst excited the entire electric vehicle sector by moving industry leader Tesla's (TSLA) price target from $1,100 to $1,400. The entire space, including LCID and Rivian (RIVN), drove higher on the news.

Lucid Group (LCID) Forecast: Expect a pullback to $42.50

LCID stock is now 82% above where it was when this current rally commenced on October 28, just under a month ago. The daily chart for Lucid appears to show that there might be some consolidation finally in this name. This should surprise no one. LCID is now worth about $3 billion more than Ford (F), and the EV euphoria of early November linked to the Rivian IPO has now begun to subside.

The daily candle from November 18 is still most alarming. That day saw a sell-off that broke well below the lower barrier of the ascending price channel that began on October 22. Likewise, Monday's candle wick showed strong resistance when the stock traded up as high as $57.44 but then closed down all the way at $51.12. The Moving Average Convergence Divergence (MACD) has also begun to narrow, which may signal it is about to cross over this week.

Expect a pullback this week or next to send LCID back down to the support region between $42.50 and $43. The luxury EV brand may try another push at the area above $57, but it seems most likely that this would fail as it did on both November 17 and 22. If LCID closed above $57, this bearish thesis would become moot.

LCID 1-day chart