EV - Lucid Stock: The Reason for Today's More Than 5% Drop

October, 14 2022 05:07 PM Eaton Vance Corporation

Lucid Stock ( NASDAQ:LCID )

Lucid Group ( NASDAQ:LCID ), a manufacturer of luxury electric vehicles (EVs), surprised investors with some upbeat news this week, but Lucid stock is still down for the week. Lucid stock is expected to fall by around 7% today, with most of that total coming today and tomorrow. As of 1:26 PM EST, Lucid stock had dropped 5.8%.

What’s the Reason?

On Wednesday, Lucid announced that manufacturing of its Air sedans tripled from the previous quarter to 2,282. Lucid seems to have found its production legs and should achieve its newest 2022 output goal. Therefore the Lucid stock soared on the news. Investors in riskier assets, like Lucid, were scared off by economic data in the days that followed.

What’s Next?

As previously reported by the Labor Department, the Consumer Price Index (CPI) increased 8.2% from September last year, further fueling concerns about inflation and the possibility of a recession. Lucid stock does not want to increase production and sales during an economic slowdown. Customers may be hesitant to spend $100,000 or more on a new vehicle if they perceive a fall in their financial holdings, and the firm builds high-end luxury electric cars.

The monthly estimate of consumer expenditure (retail sales) came in lower than expected today. Although experts had predicted a 0.2% gain, the July data showed no change from the previous year. With inflation being what it has been over the last year, these numbers suggest consumers cut down on spending last month.

When evaluating Lucid stock as an investment, investors are now taking the entire picture into account. Company officials had previously lowered their annu...

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Company Name:	Eaton Vance Corporation
Stock Symbol:	EV
Market:	NYSE