Why Lucid Stock Jumped Today
Hot electric vehicle (EV) stock Lucid Group (NASDAQ: LCID) seemed to have lost some of its mojo in recent weeks. But it roared back on Wednesday, surging 5.7% as of 11:35 a.m. ET. Lucid shares just started trading on a popular stock index, and the luxury EV maker is now flush with cash to pump into growth. Oh, and Lucid Air received yet another glorious review that's called the car Tesla's (NASDAQ: TSLA) "living nightmare."
On Dec. 20, Lucid stock started trading on the Nasdaq-100 index, a market-cap weighted index comprising 100 of the largest domestic and international non-financial stocks based on market capitalization.
Inclusion in an index, especially a popular one like the Nasdaq-100 that's chock-full of growth stocks, can typically lift investor sentiment. But it can also drive the stock price higher as institutional investors who track the index have to buy the stock to match it. That's what's happening with Lucid stock right now, but it isn't the only factor driving the EV stock higher today.
Source Fool.com
