What's Going On With Lucid Stock?
Portfolio Pulse from Henry Khederian
Lucid Group Inc's shares hit a new 52-week low of $4.97 amid concerns about future rate hikes following the FOMC statement and lower-than-expected initial jobless claims data. The EV industry, including Lucid, requires significant capital investment, and potential interest rate hikes could increase borrowing costs, reducing profitability and potentially impacting the stock price negatively. The Federal Reserve maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting.
September 25, 2023 | 2:56 pm
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Lucid Group's stock price hit a 52-week low due to concerns about future rate hikes. Higher interest rates could increase borrowing costs, reducing profitability and potentially negatively impacting the stock price.
The article mentions that Lucid Group's shares hit a 52-week low due to concerns about future rate hikes. As the EV industry requires significant capital investment, higher interest rates could lead to increased borrowing costs, which could reduce profitability and negatively impact the stock price. The Federal Reserve's decision to maintain the federal funds rate also contributes to these concerns.
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