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Electric vehicle maker Lucid has been excluded from a new state purchase tax credit for consumers buying electric vehicles. The company decided to do something about it.
Investors aren’t sure they like it. They are taking profits after Lucid (ticker: LCID) outperformed Tesla (TSLA).
Lucid Group (Ticker: LCID) announced on Thursday that it will earn $7,500 in “EV Credits” on purchases of select Lucid models.
Many electric vehicle buyers receive a $7,500 tax credit from the federal government. The rebate was included in the recently passed Inflation Reduction Act. These benefits are effective January 1st.
However, to qualify for the loan, cars must be under $55,000 and trucks must be under $80,000. Lucid is a luxury car manufacturer that doesn’t have the right models.
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“We believe our customers should still get a $7,500 discount when choosing an electric vehicle,” Zach Edson, Lucid’s vice president of sales and service, said in a press release. “With this limited time offer, we hope to get Lucid Air into the hands of even more customers so they can experience the very best.”
Lucid makes the Grand Touring Air sedan starting at $138,000, the Touring starting at $107,000 and the Pure starting at $87,000. The Grand Touring and Touring trims are vehicles that are eligible for the Lucid discount.
In December, Lucid also offered potential Grand Touring customers the option to renew orders for $139,000 instead of the original $154,000.
Shares of Lucid closed down 10.6% at $10.31 a share. The S&P 500 and Nasdaq Composite fell 0.9% and 1%, respectively.
In early trading on Thursday, Lucid shares are up about 69% year-to-date, outpacing Tesla’s 63% gain. Now Lucid is up 51% and Tesla, which is up 3% despite the market downturn, is up 68%.
Both stocks are rebounding this year after a tough 2022. Tesla shares have fallen 65% over the past year. Lucid shares fell over 80%. Lucid shares are still down about 61% over the last 12 months.
Whether the Lucid stock rally will last is a good question for investors. CappThesis founder and market specialist Frank Cappelleri said that Lucid stock is facing technical resistance near its 200-day moving average. It’s around $14.40 and it’s also close to another level to keep an eye on – the November high of around $14.80 per share.
Both levels are still well above Thursday’s price and show just how difficult it is to trade Lucid shares in early 2023.
Electric vehicle maker Lucid has been excluded from a new state purchase tax credit for consumers buying electric vehicles.
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