What happened
Wednesday was a good day for the stock market generally, but it was an especially good day for Lucid Group (LCID 1.19%) investors. The electric vehicle (EV) specialist's stock rose by 3.5%, beating the 2.9% gain of the frothy S&P 500 index. Two new analyst notes on the EV space helped push the acceleration pedal on Lucid.
So what
The first of the pair was an update on the EV industry by S&P Global Mobility. Citing U.S. electric vehicle registrations, the researcher said that while sector leader Tesla is still the dominant producer, it's losing market share as new vehicle makers enter the market. Another factor in that decline is the intensifying efforts of incumbent manufacturers like Ford.
According to data compiled by S&P Global Mobility, Tesla's share of the total EVs registered so far this year is 65%. That's down significantly from the 79% of 2020.
As Lucid is a relatively niche producer of higher-end EVs and has only recently gotten its vehicles on the road, its market share is minuscule. Nevertheless, it represents a clear threat to Tesla in the luxury category.
Now what
Meanwhile, Evercore ISI initiated coverage of what it considers to be three of the most compelling stocks in the EV industry, and Lucid was one of those names.
Analyst Chris McNally said of Lucid and its peers Fisker and Rivian that they "have unique positioning in the industry and have the potential to become major players over the next decade. Although the prognosticator tagged only Fisker with an outperform (read:buy) recommendation while he rated Lucid and Rivian as in-line (i.e., neutral), he does feel Lucid can be a strong competitor in the luxury EV segment.
