What happened
Shares of EV maker Lucid Group (LCID 2.17%) looked strong Wednesday, trading up by more than 6% at their peak, even as technology stocks broadly were dropping. At the close, Lucid stock was still up by 3.3%.
So what
The move continued the rebound Lucid shares have been experiencing over the past several weeks. The stock is up by more than 40% just since May 11. But even with that recovery, it's still down by nearly half since the start of 2022.
NASDAQ: LCID
Key Data Points
Though many names in the EV sector made positive moves Wednesday, there also was some company-specific news coming from Lucid. On Tuesday, it announced a new arrangement with Bank of America to offer Lucid customers lease or loan purchase options for its luxury electric sedans.
Now what
The all-digital Lucid Financial Services platform will make it easier for customers to bring home the company's electric cars. That could be helpful, considering that they now range in price from $87,400 for the basic Lucid Air to $169,000 for the Lucid Air Dream Edition.
Lucid Financial Services will initially be available for U.S. buyers who choose one of the high-end Air Grand Touring options, which begin at $154,000. Lucid says it will be open to buyers of its other models before the end of this year. It intends to offer a seamless, digital purchasing process, where customers can apply for 24-, 36-, or 48-month leases, as well as loans of various lengths. Approvals will be based on individual circumstances.
Investors should see the news as a positive development for Lucid. The data it presented shows that Bank of America has seen a steady increase in customer applications through its digital auto-purchasing processes. Lucid hopes this will help to build on the backlog of over 30,000 reservations that it reported as of May 5.
