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The glossy stock is up about 60% this year.
Courtesy of Lucid Motors
Electric vehicle manufacturer
Polished
it was excluded from the government’s new purchase tax credits for consumers buying an electric vehicle. The company has decided to do something about it.
Investors aren’t so sure they like it. They are taking profits after a run it had
Polished
(ticker:LCID) stock outperformance
Tesla
(TSLA) shares.
Lucid Group (ticker: LCID) announced its $7,500 “EV credit” on the purchase of select Lucid models on Thursday.
Many EV buyers get a $7,500 purchase tax credit from the federal government. This discount was included in the recently approved Inflation Reduction Act. The credits went into effect on January 1.
To qualify for the credit, however, cars must be priced under $55,000 and trucks under $80,000. Lucid is a luxury vehicle manufacturer and does not have an eligible model.
“We believe our customers still deserve a $7,500 credit for choosing an electric vehicle,” said Zak Edson, Lucid’s vice president of sales and service, in a press release. “With this limited-time offer, we hope to get Lucid Air into the hands of even more customers so they can experience the very best for themselves.”
Lucid makes the Grand Touring Air sedan, which starts at around $138,000; the Touring model, which starts at around $107,000; and the Pure model, which starts at around $87,000. Grand Touring and Touring trims are the vehicles that qualify for Lucid’s discount.
In December, Lucid also offered potential Grand Touring customers the option to reinstate their orders for $139,000, instead of the original price of $154,000.
The glossy stock fell 8.3% Thursday to $10.57 a share. THE
S&P 500
AND
Nasdaq Composite
they were each down 0.3%.
Entering trading on Thursday, Lucid stock is up about 69% so far this year, surpassing the 63% gain for
Tesla
actions. Now, Lucid is up 63%, while Tesla, which is up 4.9% despite the market decline, is up 71%.
Both stocks rebounded to start the year after a difficult 2022. Tesla stock fell 65% last year. Glossy stock is down more than 80%. Lucid shares are still down about 61% over the past 12 months.
Whether the rebound in Lucid shares can continue is a good question to ask investors. The glossy stocks are encountering technical resistance around their 200-day moving average, said Frank Cappelleri, founder and market engineer at CappThesis. It’s about $14.40, which is also close to another level to watch: November’s high of about $14.80 per share.
Both levels are still much higher than Thursday’s price and illustrate how difficult trading Lucid stock was at the start of 2023.
Email Al Root at [email protected]
