- Lucid Motors stock tumbles again on Tuesday, down 1%.
- LCID CCIV stock struggling as Tesla comes under the spotlight.
- Tesla stock suffers a 3% fall after a tough fall on Monday.
Lucid Motors shares continue to disappoint loyal investors as the electric vehicle sector took a bit of a hit this week. Tesla has been the main culprit with Reuters reporting on two potentially negative news stories that have hit the Tesla share price pretty hard. Firstly it was news of Tesla’s autopilot system being investigated by the National Highway Traffic Safety Administration (NHTSA). The situation worsened on Wednesday when reports that two US senators want the Federal Trade Commission to investigate Tesla.
“Tesla and (CEO) Mr. (Elon) Musk’s repeated overstatements of their vehicle’s capabilities…put Tesla drivers – and all of the traveling public – at risk of serious injury or death,” Senate Democrats Richard Blumenthal and Edward Markey said in a letter to newly appointed FTC Chair Lina Khan. Tesla stock understandably fell sharply on Monday and Tuesday and where Tesla goes other electric vehicle stocks tend to follow.
Lucid Motors closed on Tuesday t $22.56 breaking out of the long term uptrend channel and in the process hitting the point of control at $22.43. The point of control is the price at which the highest volume has occurred, so an equilibrium of sorts.
Lucid Group key statistics
|Market Cap||$38 billion|
|Enterprise Value||$6 billion|
|52 week high||$64.86|
|52 week low||$9.60|
|Average Wall Street rating and price target|
CCIV LCID stock forecast
We will use both tickers for now as the old Churchill Capital still garners some attention despite the recent name and ticker change. The nice uptrend channel now looks to be in jeopardy after Tuesday’s break lower. Not a definite move just yet and it may turn out to be a buy-the-dip opportunity. The low at $20.90 from July 19 is the level we really want to see holding as otherwise this will be a lower low and end the bullish trend. Failure to break this and we can start to dream of higher prices again. Tesla will set the tone for the sector as ever and in particular with the news flow surrounding that one. We wrote earlier that it may be time to test a buy the dip strategy in Tesla (see here) and if so then that should follow through with Lucid also.
Buying dips is always tricky but if the long term trend is in your favour then it should make things easier. Lucid needs to break the short term 9-day moving average at $23.38 and then the high from late July at $29.03 can be targetted. Buying around current levels sub $23 means using a break of $20.90 as your stop as we mentioned that this ends any bullish sentimetn.
Like this article? Help us with some feedback by answering this survey: