Why Lucid's Stock Is Driving Downhill Premarket Today
Portfolio Pulse from Shanthi Rexaline
Lucid Group, Inc. (NASDAQ:LCID) shares are declining in premarket trading after an announcement that Lucid will be removed from the Nasdaq 100 Index. The removal is due to the annual reconstitution of the index, which considers factors like market capitalization and trading volume. Lucid has faced challenges with production and deliveries, leading to a significant drop in its stock price from post-IPO highs. The removal from the index could lead to further selling pressure as index-tracking funds may divest from the stock. In premarket trading, LCID's stock fell 6.43% to $4.43.
December 11, 2023 | 11:45 am
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Lucid Group, Inc. is facing a premarket stock price decline due to its upcoming removal from the Nasdaq 100 Index, which could lead to further divestment from index-tracking funds.
Lucid's removal from the Nasdaq 100 Index is a significant event that typically leads to selling pressure from funds that replicate the index. Given Lucid's already struggling stock performance, this news is likely to exacerbate the negative trend in the short term.
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IMPORTANCE 90
RELEVANCE 100