Lucid Group Stock Drops Amid Broader EV Sector Headwinds: What's Going On?

Lucid Group Inc LCID shares are under pressure Friday morning, down 5.39% to $2.28. Despite no company-specific news, the sell-off mirrors a sector-wide downturn in EV stocks triggered by recent political developments.

What To Know: Investor sentiment across the EV market has soured following the passage of former President Donald Trump's "Big Beautiful Bill" in the Republican-controlled House. The bill proposes sweeping changes, including the elimination of the $7,500 federal EV tax credit for automakers exceeding 200,000 U.S. sales by the end of 2025.

It also introduces new annual EV fees and rolls back several clean energy incentives. These proposed policy shifts have raised fears about long-term demand and growth prospects across the EV industry.

Read Also: HP Stock Drops 10% Post-Earnings Miss, Outlook Disappoints

Trading activity in Lucid shares is notably elevated, with session volume already reaching 116.68 million shares, surpassing the 100-day average volume of 112.14 million, even though it's only Friday morning.

Additionally, Lucid's short interest remains substantial. Approximately 369.87 million shares are sold short, representing 45.4% of the float, signaling continued bearish sentiment among investors.

Lucid is not alone in its decline. Shares of fellow EV manufacturer Rivian Automotive Inc and others have also come under pressure as the sector adjusts to the potential implications of recent legislation.

Read Also: SharpLink Gaming Stock Soars Over 2,600% In A Week On Ethereum Treasury Deal

How To Buy LCID Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Lucid Group’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, LCID has a 52-week high of $4.43 and a 52-week low of $1.93.

Image: Courtesy of Lucid