VWAPY - Lucid Group: Use The Rivian-Volkswagen News To Cut More

2024-06-27 14:27:19 ET

Summary

• Lucid Group, Inc. investors reacted positively to the Volkswagen-Rivian joint venture news.
• Lucid recently had an almost 30% short-interest ratio, suggesting some short-covering could have occurred.
• Lucid already has a cornerstone backer: the Saudi PIF. Don't expect another strategic backer to emerge.
• The company still needs more cash flow to scale. Moreover, it has suffered from its inability to scale.
• Lucid is a fundamentally weak stock with a clear downtrend price action. Don't expect significant changes. Read on.

Lucid Stock: Some Respite From Volkswagen-Rivian Joint Venture

Lucid Group, Inc. ( LCID ) investors likely cheered the biggest electric vehicle ("EV") news of the week, as Volkswagen ( VWAGY , VWAPY ) and Rivian ( RIVN ) announced a potentially "game-changing" joint venture. The JV involves Volkswagen investing $5B through 2026 as Europe's leading legacy OEM seeks to lift its EV game. Rivian benefits from Volkswagen's manufacturing expertise while getting much-needed liquidity to scale its vehicles....

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