What's Going On With Lucid Stock?

Lucid Group Inc LCID shares hit a new 52-week low of $4.97 Monday morning. Shares of auto stocks are volatile in recent sessions with concerns about future rate hikes following last Wednesday's FOMC statement and lower-than-expected initial jobless claims data.

Lucid Group, like many companies in the EV industry, requires significant capital investment for research, development and production expansion. If the Federal Reserve signals future interest rate hikes, it could lead to higher borrowing costs for the company.

Higher interest expenses can reduce profitability and potentially negatively impact the stock price.

In general, the EV industry is highly competitive and sensitive to factors like government policies, consumer preferences and economic conditions.

Negative economic news can heighten concerns about consumer demand for EVs and the industry's growth prospects, potentially affecting Lucid Group's stock price.

What's Going On?

The Federal Reserve last week maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting in a unanimous move.

The September dot plot reveals the median preference for the fed funds rate at the close of 2023 remains unwavering at 5.6%. This figure mirrors projections made back in June, hinting at the possibility of one more rate hike during either of the last two meetings this year...Read More

According to data from Benzinga Pro, Lucid has a 52-week high of $17.81 and a 52-week low of $4.97.