Electric-vehicle stocks were in the spotlight this week as major developments in the industry, such as Tesla (TSLA 11.00%) winning a big order, fueled investor interest. Yet, none could come even close to the stunning run-up in Lucid Group (LCID 43.00%) shares: The stock was up 52.9% through the week by 1 p.m. EDT Friday but had jumped 72.5% at its highest point during the week's rally, according to data from S&P Global Market Intelligence.
Can this EV stock maintain momentum next week? Possibly, as this weekend is a big one for Lucid.
Lucid kicked off the week on a strong note, teasing followers by posting pictures of its Air cars on social media. Speculation was ripe, and interest in the stock was already building when the company announced on Thursday it will deliver Lucid Air Dream Edition cars to its first group of customers on Oct. 30. Lucid stock shot through the roof on Thursday, making its biggest intraday move yet.
Why was this such a big deal? For one thing, these will be the first-ever Lucid cars to hit the roads. Plus, the Dream Edition is not just any electric car; it features the longest driving range among all EVs rated so far by the Environmental Protection Agency. Air Dream Edition is also Lucid's highest-priced model.
Moreover, to ensure it continues to pique investor interest and build upon the hype, Lucid will hold a rally on Oct. 30 for customers' inaugural rides. The company will share highlights from the event throughout the weekend on its social media channels.
This week, Lucid also gave the market a glimpse into its growth potential when CEO Peter Rawlinson said he dreams of eventually making more affordable yet highly efficient Lucid Airs. Rawlinson was at a conference in Riyadh, the capital of Saudi Arabia. The country is making big investments into EVs and has reportedly given Lucid the approval to start production in the nation by 2024.
Rawlinson, in fact, revealed that Saudi Arabia is already Lucid's second-largest market in terms of preorders.
At a time when several automakers are still in the engineering, designing, or production phases for EVs, I think Lucid starting to deliver cars within the timeline it projected isn't just a milestone for the company but the industry as a whole. It was, therefore, not surprising to see investors pump money into the EV stock this week. With Lucid shares now commanding a staggering market capitalization of around $60 billion, the EV maker will have to work even harder to ensure investor confidence doesn't fade in the long run.