LCID - Why Tesla and Nikola Dropped While Lucid Stock Jumped Today
Tesla (NASDAQ: TSLA) investors didn't react well to the second-quarter delivery data the company released over the weekend. But there was some good news within those results. The electric vehicle (EV) leader said it set an all-time monthly record for deliveries in June. That helped the stock recover Tuesday after it initially dropped. But the company's production may soon face new headwinds, and concerns about those sent the stock downward by as much as 2.5% Wednesday morning. Electric truck start-up Nikola (NASDAQ: NKLA) has its own issues, and after that company released a note to shareholders regarding them, its stock also fell.
Conversely, there was some positive news from another EV start-up that had Lucid Group (NASDAQ: LCID) shares popping Wednesday. As of 11:20 a.m. ET, Lucid stock was up 7.1%. At that time, Tesla and Nikola were down 1% and 1.4%, respectively.
What was good news in June for Tesla, however, may become a headwind soon. The company delivered a record 78,000 electric vehicles from its Shanghai plant in June, according to a Barron's report citing data from the China Passenger Car Association. But in Shanghai, 24 new cases of COVID-19 were diagnosed, and Bloomberg reports the government there is beginning another round of mass testing in line with China's "zero COVID" policy. This raises the possibility of a new lockdown in Shanghai just as Tesla and other automakers in China have ramped production back up after the prior lockdowns.
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Why Tesla and Nikola Dropped While Lucid Stock Jumped Today