Why Lucid Group (LCID) Is Skyrocketing - InvestingChannel

Why Lucid Group (LCID) Is Skyrocketing

We recently compiled a list of the Why These 10 Stocks Are Skyrocketing. In this article, we are going to take a look at where Lucid Group, Inc. (NASDAQ:LCID) stands against the other stocks that are skyrocketing.

Wall Street saw a quiet trading session this week amid the lack of major catalysts to perk up the market. Despite an overall thin trading volume, 10 companies managed to outperform and mirror gains of all major indices.

To come up with the Top 10 Gainers this week, we focused on stocks that have at least $2 billion in market capitalization and $5 million in daily trading volume.

Let’s take a look at Lucid Group, Inc. (NASDAQ:LCID) and how it has performed so far.

Why Lucid Group Inc. (LCID) Skyrocketed? An engineer examining an electric vehicle design in a lab, showing the company’s innovative battery systems.

Lucid Group Inc. (NASDAQ:LCID)

Shares of Lucid Group Inc. (NASDAQ:LCID) saw a 5-percent jump in the first two days of the trading week, opening at $3.03 on Monday and ending Tuesday at $3.20 apiece, with analysts pointing to its new Gravity SUV as well as other potential partnerships with other established automakers to reduce costs and leverage economies of scale, as having perked up its shares.

In addition, Lucid Group benefitted from news of an increasing number of electric vehicle sales. According to Cox Automotive, a total of 116,000 EV units were sold in November, marking a 10-percent increase from the previous month.

Analysts are also placing their bets on the company’s potential for a rebound, with orders and deliveries seen as key indicators for growth over the next few years. Furthermore, the backing of Saudi Arabia’s Public Investment Fund, which recently invested an additional $1.5 billion, added confidence to the company’s growth prospects.

Overall, LCID ranks 6th on our list of stocks that are skyrocketing. While we acknowledge the potential of LCID as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LCID but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

Disclosure: None. This article is originally published at Insider Monkey.

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