What happened
The S&P 500 and Dow Jones Industrial Average both began today's trading session in the red to start the new month, but it's the bulls who are behind the wheel regarding EV maker Lucid (LCID 1.63%). Between an analyst's optimistic new price target and positive news from an EV peer, investors have two catalysts powering their enthusiasm for Lucid's stock in today's trading session.
As of 12:15 p.m. ET, shares of Lucid are up 4.6%, retreating from their earlier climb of 8%.
So what
Reinstating coverage on Lucid's stock, Itay Michaeli, an analyst at Citigroup, set an $8 price target and rated it neutral. Based on the stock's closing price of $6.89 on Friday, Michaeli's price target implies upside of 16%. According to The Fly, Citigroup's position on Lucid is based, in part, on the company's superior technology and improved liquidity.
The other positive factor behind the stock's rise today is news from Tesla. During the second quarter of 2023, Tesla delivered a record 466,140 vehicles, representing a 10% quarter-over-quarter increase. Through the first half of 2023, Tesla has delivered 889,015 vehicles.
Now what
It's far from shocking that shares of Lucid are powering higher today. Analysts' price targets frequently stoke investors' enthusiasm. However, Wall Street oftentimes has shorter investing horizons than the multiyear holding periods that The Motley Fool favors. Therefore, investors should always be circumspect about taking Wall Street's price targets at face value.
Regarding news from Tesla, investors are recognizing the company's strong Q2 2023 deliveries as a clear sign that market demand for electric vehicles remains strong. This is well worth noticing, and potential investors should look for similar news from Lucid when it reports Q2 2023 results in the coming weeks.
