Tech stocks today are seeing a very nice surge as investors appear keen to rotate into riskier corners of the market. Accordingly, perhaps investors shouldn’t be surprised that one of the biggest movers in today’s session happens to be Lucid Motors (NASDAQ:LCID). At the time of writing, LCID stock is up nearly 8%, significantly outpacing the broader Nasdaq index, which is up only 1% today.
This move is due to a clear company-specific catalyst. Lucid announced yesterday that it’s begun testing its new electric SUV. The company’s Gravity SUV has been known to the public for some time as a concept SUV that was expected to come out next year. However, Lucid’s release of images and video of that vehicle has once again spurred investor interest in this high-end EV company.
Like the company’s Air sedans, Lucid has noted that this Gravity SUV will have the longest range of any battery-powered SUV out there. Additionally, this sports utility vehicle can reportedly seat seven, with three rows. So, it’s a bigger, high-performance option for car buyers seeking the maximum possible range right now. Sounds good to me.
Let’s dive into why this announcement is making such big waves today.
LCID Stock Surges on Gravity SUV Details
Today’s move in LCID stock is really reminiscent of some of the moves this stock used to make during the previous EV stock bubble. Of course, all investors had to go on at that time were renderings. However, Lucid has shown its ability to produce and deliver cars and is now a stock that’s being judged on its delivery numbers and forecasts.
Accordingly, we’ll have to see how orders and production numbers line up for the Gravity SUV. But I have to say, the specs, photos and videos that have been released thus far do paint an intriguing picture. I have no doubt that high-end buyers will easily shift their focus to Lucid’s Gravity model, all else being equal.
Investors in LCID stock are already keenly aware that a recession, or severe economic slowdown, could hurt the company’s prospects. However, the market for higher-end electric SUVs appears to be one with less competition. Accordingly, given the Gravity’s prospective features, I can see why this stock is making a nice move higher today.
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.
