Where Will Lucid Stock Be in 1 Year?

With its shares down 52% since the start of the year, Lucid Group (NASDAQ: LCID) seems to be a falling knife. Even though shares look cheap right now, they could fall even more due to the company's deteriorating fundamentals. Let's explore what the next 12 months could have in store as the embattled electric-vehicle (EV) maker fights for survival.

Unlike EV-industry leader , which is up 28% since President-elect Donald Trump's victory, Lucid hasn't reacted positively to the news, with its stock down by roughly 10% since Nov. 5. It's impossible to pinpoint the exact cause of a stock-price move, but there are some reasons why investors may see the new administration as a threat.

Unlike the outgoing Biden administration, Trump seems less willing to force the adoption of electric vehicles through government intervention. Reuters reports that his transition team plans to end the $7,500 consumer tax credit for EV purchases -- a move that would take Lucid's already-expensive cars even further out of reach for most consumers.

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Source Fool.com