Shares of EV start-up Lucid Group (LCID 5.58%) were up as much as 15% at their highs of the week. As of early Friday morning, the stock was still about 9.5% higher than where it closed last Friday, according to data provided by S&P Global Market Intelligence.
Nothing specific came from the company this week. Prior to this week, however, investors had punished Lucid shares since it released its second-quarter report in the first week of August. The company surprised investors in that report by cutting its 2022 production forecast for the second time this year. This time, Lucid said it will only make half as many of its luxury electric vehicles as it last said. This week, however, there were reports that the company is well on its way to meeting, or beating, that prediction of making 6,000 to 7,000 electric Air sedans.
Those reports weren't confirmed by the company, but investors may have felt the stock had been beaten up enough already. The stock is down 20% since that quarterly report, and it wasn't just because of the supply chain struggles impacting production volume. Lucid also announced two weeks ago that it plans to raise up to another $8 billion over the next three years.
That may have surprised some investors since the company ended the second quarter with $4.6 billion in cash on its balance sheet. Considering the macro environment with interest rates rising and the struggling share price, the raising of additional capital is getting more costly.
For this week, however, investors seemed to think the stock may have found a base. If the reports that production volumes are ramping up nicely are confirmed, there could be more spikes in the share price coming. But investors who want to own Lucid shares should be sure to have a high risk tolerance and a long time horizon.