Shares of electric vehicle (EV) maker Lucid Group(NASDAQ: LCID) are recovering today after tumbling in the wake of the U.S. elections yesterday. But today's bounce looks to be coming for a different, company-specific reason.
After dropping more than 5% yesterday, Lucid shares were higher by 3.8% as of 1:30 p.m. ET today. While the stock is still down nearly 50% year to date, it's today's news that shareholders hope will be the catalyst that could turn Lucid's fortunes around.
EV technology focus
Lucid announced today that it is now taking orders for its Gravity Grand Touring SUV. It has thus far only offered its luxury Air sedan models since it began production about three years ago. It's now expanding to the SUV segment and focusing on what it expects to be sector-leading technologies.
The Gravity trim now available to order is said to have more than 440 miles of range on a single battery charge. The Gravity Grand Touring also delivers 828 horsepower with the standard version providing two rows of seats for up to five occupants. It comes with the company's advanced driver assistance system.
But rather than looking to tap more of a mass market with the new model, the Gravity Grand Touring is a luxury EV with a luxury price tag. It starts at $94,500 with a lower priced Touring model not due until late 2025. The latter model will start at $79,900.
Lucid has been losing money as it struggles with low-volume sales. It expects to produce just 9,000 vehicles this year. Investors have been waiting for a catalyst to boost those sales. It's hard to imagine that a luxury SUV selling for nearly $95,000 will be that catalyst. But investors will hear more from management today after the market closes as the company provides its third-quarter operational and financial update.
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Howard Smith has positions in Lucid Group. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
