With its heavy weighting of technology stocks, the Nasdaq Composite Index has long been a beneficiary of a "risk on" investor mentality. After reaching correction territory in late January, the index has recovered with a gain of more than 7%, including a more-than 1.75% move to the upside today. More risky, speculative stocks like electric car start-up Lucid Group (LCID -16.24%) tend to move with the Nasdaq. That trend is holding again today, with shares notching a gain of 3.9% as of 2:32 p.m. ET.
Lucid didn't report any company-specific news today. It likely won't have much to say publicly before it reports its fourth-quarter 2021 results, which should come in the next couple of weeks. But after the stock has dropped 25% to start 2022, it's not surprising to see a bounce along with other growth stocks, particularly since the stock joined the Nasdaq-100 Index in December 2021.
Lucid gave investors its last business update on Nov. 15, 2021 just two weeks after it started shipping its technology-laden luxury electric Air sedans. Investors hope the company's technology, including its 520-mile battery range, will help drive growth in its business.
Even after the correction experienced in the last month, investors have given Lucid a valuation of almost $50 billion. That would seem to include expectations beyond just the Air sedan or even the future Gravity SUV model the company plans to launch late in 2023. Lucid has said it plans to use its engineering and technology expertise for future growth opportunities in applications beyond its own manufactured vehicles, including into energy storage systems.
Lacking any real news, shares will move around with the rest of the technology sector. But the stock's direction will ultimately be determined when the company provides business updates related to any new applications for its technology, as it also works to expand the growth of its vehicle business.