Lucid (LCID -3.08%) stock has seen substantial volatility Wednesday, but it's swung to the red in late trading. The company's share price was down roughly 2% as of 3:15 p.m. ET, but it had been up as much as 5.8% earlier in the day.
Lucid stock saw gains early in today's session after the company announced that it had signed on to a new mineral-sourcing initiative. The company published a press release today detailing its collaboration with mineral producers Alaska Energy Metals, Graphite One, Electric Metals, and RecycLiCo for the production of minerals useful to the electric vehicle (EV) industry.
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Despite the seemingly positive development, Lucid's gains receded and the stock has now seen a modest pullback as I write this. Investors may be moving to take profits on recent gains for the company's share price, and it's also possible that some shareholders are concerned about Lucid devoting substantial cash to support mineral-sourcing projects when the company still seems to be far away from profitability.
Is Lucid stock a buy right now?
While Lucid stock has seen some significant volatility today, its participation in mineral-sourcing initiatives looks like a smart move from a long-term perspective. Rising geopolitical tensions between the U.S. and China raise significant questions about whether domestic companies can rely on access to the Chinese mineral market for key components.
Today's mineral news doesn't seem to be a bearish indicator for Lucid, but the company's recent valuation gains still mean that investors should keep their personal risk-tolerance in mind when assessing the stock. The company's share price has surged following news of its robotaxi partnership with Uber and news that its Air vehicles will soon become compatible with Tesla's SuperCharger EV charging network. Recent partnerships have made Lucid a more attractive proposition for risk-tolerant investors, but it's still a speculative play.
