Why Lucid Group Stock Is Soaring Today

Shares of Lucid Group (NASDAQ: LCID) were trading 13.2% higher as of 1:15 p.m. ET Thursday after having been up by as much as 15.3% earlier in the session. At the time, the S&P 500 had gained 0.4% and the Nasdaq Composite was up 0.7%.

What happened

The electric vehicle (EV) maker announced Thursday that veteran Lucid engineer Emad Dlala had been promoted to the role of senior vice president of powertrain. Dlala was a central player in the development of many of Lucid's key technologies and vehicle systems, and it's clear that senior leadership has great faith in him.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

"Emad has been instrumental in the development and advancement of Lucid's powertrain technology," CEO and CTO Peter Rawlinson said, asserting that he will bring "exceptional leadership" to the team.

The promotion comes at what could be a make-or-break time for the company. Investors appear to be pleased with the pick, and likely view the choice of an insider as a confident move by management; leadership doesn't feel the need to look elsewhere for expertise despite the mounting pressure on the business.

What's next

Lucid's sales growth has flattened over the last few quarters while costs have risen, and it's still operating at a significant loss. It's crucial that the rollout of its newest model, an SUV, be successful. However, with consumer preferences shifting toward a greater emphasis on affordability -- and with President Trump aiming to end the federal EV tax credit -- it's unclear how well an electric SUV with a base price of around $80,000 will be able to compete.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $340,048!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $44,908!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $554,019!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

Learn more »

*Stock Advisor returns as of February 3, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.