Why Lucid Stock Is Sinking Today

Lucid (NASDAQ: LCID) stock is heading lower in Friday's trading amid a day of big sell-offs for the broader market. The electric vehicle (EV) specialist's share price was down 7.6% as of 3:40 p.m. ET. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) was down 1.7%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was down 2.2%.

Lucid is retreating today due to a combination of catalysts. In addition to bearish macroeconomic indicators, the company's share price is likely also being pressured by guidance from Rivian -- another player in the EV market.

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Lucid stock slips on bearish macroeconomic data

Yesterday, stocks saw a big sell-off after Walmart's midpoint guidance called for annual sales growth of only 3.5% this year -- and the pullback is intensifying today as other economic indicators came in worse than anticipated.

According to the latest survey from the University of Michigan, consumer confidence in the U.S. economy is slipping due to fears about inflationary pressures that could arise from new tariffs. Results for two economic indexes compiled by S&P Global also came in worse than expected.

The S&P Global Manufacturing Purchasing Managers' Index (PMI) score for this month was 51.6, which came in below the previous estimate for as core of 52.8. Meanwhile, the PMI score for the service sector dropped to 49.7 -- coming in far worse than the average economist estimate's call for a score of 49.7. Softness in the U.S. economy could create sales headwinds for Lucid and new valuation pressures for its stock.

Rivian's new guidance could be a negative indicator for Lucid

Rivian reported fourth-quarter results after the market closed yesterday and actually delivered sales and earnings that came in significantly ahead of Wall Street's targets. The business reported a loss of $0.70 per share on sales of $1.73 billion, topping the average analyst forecast's call for a per-share loss of $0.77 per share on sales of $1.43 billion. But despite substantial beats in Q4, the company's guidance could indicate a challenging backdrop for Lucid this year.

After delivering 51,579 vehicles last year, Rivian is guiding for vehicle deliveries between 46,000 and 51,000 this year -- suggesting softer industry demand. If so, that could spell trouble for Lucid -- which is still producing and delivering far fewer vehicles than Rivian and has much further to go before economies of scale open the door for positive gross margins on EV sales.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends S&P Global and Walmart. The Motley Fool has a disclosure policy.