What happened
Shares of Lucid Group (LCID -3.55%) soared as much as 16.3% today after the company made progress toward adding to its electric vehicle (EV) lineup. As of 2:03 p.m. ET, shares had pared some of that gain, but were still up by 7.5% on the day.
So what
The stock's bounce came after Lucid announced it was closer to expanding its EV offerings beyond the Air luxury sedan models. The automaker has long said it planned to sell an SUV, and yesterday it said its Gravity SUV was now testing on public roads across the country.
A Lucid Gravity SUV. Image source: Lucid Group.
In a statement to go along with the announcement, CEO Peter Rawlinson said, "The Lucid Air redefined the sedan category, and as our technology continues to evolve and lead the market, we are in a place where the Gravity is positioned to change the world of SUVs."
Now what
Investors are cheering because there have been signs that the Air sedan isn't living up to the company's own expectations for sales. Lucid only delivered 1,406 EVs during the first quarter, and the company expects to produce between just 10,000 to 14,000 electric vehicles for all of 2023.
Lucid reported reservations of over 28,000 as of Feb. 21. That was down from over 34,000 as of Nov. 7, 2022. The company subsequently announced last month that it would be laying off employees to reduce its total workforce by 18%.
Investors are hoping its upcoming Gravity SUV will help stir up interest in the brand and increase revenue through higher-volume production and sales. With the stock down more than 60% over the past year, the Gravity is likely the next potential catalyst to help reverse the stock's performance.
