- NASDAQ:LCID fell by 6.15% as the broader markets pulled back on Tuesday.
- The electric vehicle sector slipped as Tesla reported mixed earnings.
- Domestic EV Makers are struggling ahead of their earnings calls.
NASDAQ:LCID could not follow up its impressive first day of trading on Monday, as the broader markets tumbled, snapping a five day winning streak for the S&P 500. Shares of Lucid gave back its gains from Monday, as the luxury EV maker dropped by 6.15% to close the trading day at $25.18. Stocks that have recently completed their mergers with SPACs have experienced volatility, so it should come as no surprise to see Lucid go through this as well. Still, the hype surrounding Lucid as a threat to Tesla is growing by the day, especially after CEO Peter Rawlinson provided an update for production capacity and vehicle reservations on Monday.
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Speaking of Tesla (NASDAQ:TSLA), the industry leader reported its earnings after the market closed on Monday, to mixed results. The company did manage to top analyst expectations, and recorded its first ever quarter of $1 billion in revenues. The stock proceeded to fall by 1.95% on Tuesday, as a Needham analyst stated that the price of Tesla shares was already priced for perfection, with all of the growth already baked in. Generally, as Tesla goes, so do the rest of EV stocks, and that’s what happened on Tuesday as the entire sector finished in the red.
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Elsewhere in the electric vehicle world, iconic automaker General Motors (NYSE:GM) is battling with another recall of the Chevy Bolt. The recall is for models made from 2017 to 2019 and deals with battery issues. Meanwhile, Ford (NYSE:F) was trading lower ahead of its quarterly earnings call on Wednesday, although the company did commit to a sizable investment in electric truck startup Rivian, of which Amazon (NASDAQ:AMZN) is the main investor.