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Lucid stock has climbed about 60% this year.
Courtesy Lucid Motors
Electric vehicle maker
Lucid
was shut out of the government’s new purchase tax credits for consumers buying an EV. The company decided to do something about that.
Investors aren’t so sure they like it. They are taking some profits after a run that had
Lucid
(ticker:LCID) stock outperforming
Tesla
(TSLA) shares.
Lucid Group (ticker: LCID) on Thursday announced its own $7,500 “EV credit” on the purchase of select Lucid Models.
Many EV buyers are getting a $7,500 purchase tax credit from the federal government. That discount was included in the recently passed Inflation Reduction Act. The credits went into effect on Jan. 1.
To qualify for the credit, however, cars need to be priced less than $55,000 and trucks less than $80,000. Lucid is a luxury-vehicle maker and doesn’t have a model that qualifies.
“We think our customers still deserve a $7,500 credit for choosing an EV,” said Zak Edson, Lucid’s vice president of sales and service, in a news release. “With this limited-time offer, we hope to get Lucid Air into the hands of even more customers so they can experience the best for themselves.”
Lucid makes the Grand Touring Air sedan, which starts at about $138,000; the Touring model, which starts at about $107,000; and the Pure model, which starts at about $87,000. The Grand Touring and Touring trims are the vehicles that qualify for Lucid’s discount.
In December, Lucid also offered potential Grand Touring customers the chance to reinstate their orders for $139,000, instead of the original price of $154,000.
Lucid stock was off 8.3% Thursday at $10.57 a share. The
S&P 500
and
Nasdaq Composite
were each down 0.3%.
Coming into Thursday trading, Lucid stock was up about 69% so far this year, topping the 63% gain for
Tesla
shares. Now, Lucid is up 63%, while Tesla, which has risen 4.9% despite the market’s drop, has gained 71%.
Both stocks have bounced to start the year after a difficult 2022. Tesla stock dropped 65% this past year. Lucid stock fell more than 80%. Lucid shares are still down about 61% over the past 12 months.
Whether the bounce in Lucid shares can continue is a good question for investors to ask. Lucid shares run into technical resistance around their 200-day moving average, said CappThesis founder and market technician Frank Cappelleri. That is about $14.40, which also is close to another level to watch—the November high of about $14.80 a share.
Both levels are still much higher than Thursday’s price and illustrate just how hard it has been to trade Lucid stock early in 2023.
Write to Al Root at [email protected]
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