Today, the electric vehicle (EV) space is on fire. For early stage EV makers such as Lucid Group (NASDAQ:LCID), this means big upside. Today, LCID stock is up approximately 30% at the time of writing, and has traded more than 35% higher earlier in the day. There appear to be a number of factors responsible for this move.
Let’s start with the sector-specific catalyst. Today, news that President Joe Biden’s administration is pushing Democratic lawmakers to push through the much anticipated infrastructure bill is boosting anything related to clean energy. The EV sector is a key beneficiary of this legislation. Accordingly, it’s no surprise we’re seeing such impressive upside moves with various EV stocks today.
For higher growth EV options like Lucid, this move is amplified. A higher volatility pick, we’ve seen this play out on the downside as well. However, when times are good, stocks like LCID seem to run much faster than the overall sector.
Let’s dive into the company-specific news driving LCID stock higher today.
LCID Stock Soars on Comments From CEO
Today, Lucid Group CEO Peter Rawlinson made some comments that seem to have resonated with investors. At an event in Riyadh, Mr. Rawlinson noted something unique about Lucid. Actually, something unique to only Lucid and rival Tesla (NASDAQ:TSLA).
They both develop and design their entire vehicles from scratch.
Indeed, Tesla’s “secret sauce” is something other competitors have had difficulty replicating in the past. Designing and manufacturing everything from battery packs to chassis, software, and the nuts and bolts of a vehicle isn’t easy. Accordingly, given where Tesla has gone in such a short amount of time, investors seem to feel Lucid could be a real, significant threat. Currently, TSLA stock is up 3%, but it has seen gains well below some of its smaller cap peers today.
These comments also coincide with the recently announced date of Oct. 30 — the day Lucid will start delivering its vehicles to paying customers. Today, it appears investors are banking on Lucid showing some rather impressive growth out of the gate. Depending on the reviews these vehicles get, Tesla could (finally) have a real competitor on its hands.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.