What Is Going on With Lucid Motors (LCID) Stock Today?

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  • Tesla (TSLA) will expand its Supercharger network to include other electric vehicle manufacturers.
  • Lucid Motors (LCID) is also rallying on the news out of Washington as the White House makes a pro-EV push.
  • Investors will need to hear good news from Lucid about second-quarter deliveries if bulls hope for the rally to continue.
LCID stock - What Is Going on With Lucid Motors (LCID) Stock Today?

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Lucid Motors (NASDAQ:LCID) is rallying on Friday following an announcement from the White House, which said Tesla (NASDAQ:TSLA) will expand its Supercharger network to other electric vehicles (EVs) later this year. For its part, TSLA stock is up more than 3%, outpacing LCID stock and its 1% gain.

At today’s high, Lucid shares were up 4% while other EVs received a boost, too. This comes after LCID stock rallied 8.5% on Thursday and was up 26% from this week’s low to today’s high.

Increasing the number of charging stations will remove a big burden from EV companies. According to the announcement, “Later this year, Tesla will begin production of new Supercharger equipment that will enable non-Tesla EV drivers in North America to use Tesla Superchargers.”

Washington has big plans when it comes to its EV push. Part of the $1.2 trillion Bipartisan Infrastructure Law includes $7.5 billion in federal funding and $700 million in private sector investments. The White House’s goal is to eventually have 250,000 chargers (not stations) built per year. That’s a tall order, but it’s necessary to meet eventual demand.

How Does This Help LCID Stock?

For all this talk about Washington and Tesla — two entities that haven’t gotten along very well — there’s one big question: how does this help Lucid Motors and other EV companies?

Back before Tesla became a household name, “range anxiety” was a real thing. How could drivers recharge their vehicle when the battery runs low? Tesla answered that question by building the Supercharger network. Fast forward to today, and range anxiety is of less concern thanks to Tesla’s development of this network. However, new EV players don’t have such a capital-intensive network in place.

By gaining access to the Supercharger network and with the White House making a strong push for EVs, Lucid Motors and other manufacturers gain a big advantage — one that Tesla didn’t have when it started out.

More charging availability should help ease customers’ concerns about range anxiety. It should also give them more confidence when shopping for other non-Tesla EV models — a clear positive for LCID stock.

Lucid shares recently rallied on good news about its Casa Grande facility. Now it just needs a positive update on its second-quarter delivery results — like Rivian (NASDAQ:RIVN) had a few days ago.

If Lucid can do that, then perhaps LCID stock can continue to rebound.

On the date of publication, Bret Kenwell 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.


Article printed from InvestorPlace Media, https://investorplace.com/2022/07/what-is-going-on-with-lucid-motors-lcid-stock-today/.

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