Lucid Motors (NASDAQ:LCID) is getting smoked on Tuesday, down more than 8% and hitting new 52-week lows. In fact, this is the fourth-straight session that LCID stock has hit new lows. The worst part? The decline is happening on seemingly no news.
Shares of Lucid are working on their fifth weekly decline in the last six weeks. Amid that stretch, LCID stock has suffered a peak-to-trough decline of 42%. The lone “up week” in that series saw a gain of just around 1%. What’s more, LCID has made new 52-week lows in nine of the last 11 trading sessions.
The unfortunate reality is that electric vehicle (EV) stocks are just not trading that well right now.
Rivian (NASDAQ:RIVN) stock is down 6% today and trading just above its multi-month lows. It has evaporated all of the gains from its post-earnings rally, which included a roughly 25% two-day rally.
Meanwhile, Tesla (NASDAQ:TSLA) is also under pressure. TSLA stock recently made a 52-week low on Nov. 22. Shares are falling almost 2% as of this writing.
Is LCID Stock a Buy Amid the Pullback?
The debate may rage on both sides, but investors are clearly voting with their dollars. For EV stocks — and for LCID stock specifically — they’re clearly not what investors want to own.
While there had been talk of Lucid becoming the next Tesla, LCID stock simply can’t fetch a bid.
The “risk-off” nature of the market right now is the driving force behind the selloff in Lucid. That has been the tone for most of the year and certainly since the Federal Reserve began its rate-hiking spree.
Despite optimism growing that the Fed will soon raise rates at a slower pace than before, investors also still aren’t sure when we’ll see a true Fed pivot. A potential pivot would start with no rate hikes, then eventually rate cuts. Tuesday’s selloff in LCID stock likely has more to do with the overall market environment than the company itself.
While it didn’t help that Lucid reported a top- and bottom-line miss last quarter, the company did reaffirm its production outlook. Further, its reservation book remains strong and the EV maker plans to open reservations for its new SUV in early 2023.
Still, without a better trading environment, investors will only be wondering when and where LCID stock bottoms.
On the date of publication, Bret Kenwell did not hold (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.