Shares of electric vehicle (EV) maker Lucid Group (LCID -0.61%) started the day in the red, down as much as 5.6%. The stock quickly reversed course, however, rising as much as 4%. By 2:55 p.m. ET, Lucid shares had settled in with a gain of 3.1%.
Lucid didn't put any major news out today, or over the holiday weekend. But the company has been widely discussed as a potential big winner among investors, particularly since fellow EV start-up Rivian Automotive went public last month. Today's move higher has coincided with a rising tech-focused Nasdaq Composite index, as well as a jump in Rivian shares, which was trading nearly 10% higher.
Lucid's move in the market today also reflects the mix of excitement and risk associated with the company's future. Since it reported its third-quarter financial update in mid-November, the company has raised another $2 billion and its shares were added to the Nasdaq 100 index. The former helped the company build the cash on its balance sheet to about $7 billion as it expands its manufacturing plant and executes other plans to grow. The latter helps increase the number of share buyers, as funds that track that index need to hold the stock.
Lucid will use its cash to expand both domestically and globally and to add a larger variety of electric vehicles. Most recently, the company announced the opening of its latest Lucid studio in San Diego. Its vehicle lineup currently includes four versions of the luxury electric Air sedan. But Lucid plans to begin producing a luxury SUV at the end of 2023 and additional models subsequent to that.
But it will be a long road for the company to grow into the promise that many investors believe it has. And the stock price is going to have plenty of ups and downs similar to the price action today along the way.