Lucid stock falls 5.5% after Trump plans to remove EV mandate set by Biden

From Nasdaq: 2025-01-21 11:17:08

Lucid (NASDAQ: LCID) stock is down 5.5% following Trump’s inauguration. Trump plans to remove the EV mandate set by Biden, impacting companies like Lucid. The company produced and delivered more vehicles in Q4, with the new Gravity SUV being a key focus. Despite challenges, Lucid has funding from Saudi Arabia’s Public Investment Fund.

The new Trump administration poses challenges for the EV sector, as federal subsidies and tax rebates for EV purchases may be eliminated. This could impact Lucid’s ability to scale up its vehicle production and deliveries. However, Tesla’s market leader status may help it weather these changes better than smaller competitors like Lucid.

While Lucid faces short-term challenges, its financial backing from Saudi Arabia’s Public Investment Fund may support its long-term success in the EV market. Investors should consider potential risks and rewards before investing in Lucid Group stock. The Motley Fool Stock Advisor team has identified 10 top stocks for investment opportunities, with Lucid not included in the list.

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Read more at Nasdaq: Why Lucid Stock Is Falling Today