Lucid Motors Stock Price and Forecast: Fears exacerbate the slide

• Lucid Motors (LCID) stock pops and then drops.
• LCID stock fails at trend line resistance.
• Lucid Motors is due to deliver the first vehicles this month.

Update: Lucid Motors (LCID) posted a 1.91% slide on Monday, ending the day at $24.14 per share. Wall Street opened with modest losses but quickly dipped into the red. The NASDAQ Composite finished the day down 311 points or 2.14%, while the DJIA shed 322 points or 0.94%. Global equities tumbled amid renewed jitters surrounding Evergrande, the Chinese property giant, over the announcement of a possible sell of a major stake of its property management business for more than US$5 billion.

Lucid Motors (LCID) stock gave up some recent gains on Friday as the stock closed just over 3% lower at $24.61. The stock is at the whim of retail traders mostly as they have a huge interest in this one. Lucid Motors shares surged last Wednesday after CEO Peter Rawlinson spoke bullishly at a presentation at Lucid’s Casa Grande factory. The event was designed for investors, analysts and the media, whose reactions were generally positive. Some vehicles were available for test drives during the event. The CEO is an ex-Tesla man, and he appeared to confirm Elon Musk’s view that the global semiconductor chip shortages will ease next year. The CEO also said that Lucid was on track to meet delivery targets for 2022 and 2023 and that LCID had enough cash to fund production until the end of 2022.

Lucid has ambitious goals with production targets for 2022 and 2023 at 20,000 and 50,000 vehicles, respectively. Lucid is set to go head to head with Tesla as the upstart is due to deliver its first Lucid Air sedan cars in late October. The Lucid Air Dream edition is priced at $169,000 and has been given an official US government range of 520 miles, which is 100 miles more than the Tesla Model S, according to Reuters. The Lucid Air Dream Edition costs $169,000, while the Tesla Model S is priced at $89,990. At the event in Casa Grande, CEO Peter Rawlinson said, “We’ve ridden customers of the fear of range anxiety […] The next big obstacle is cost-effectiveness of electric cars. We’ve got to get the cost down.” The Lucid Air Pure is due to go into production next year and will have a price tag of $77,400.

Lucid Motors key statistics

Lucid Motors (LCID) stock price

The recent price action has been disappointing with the spike higher last week falling to hold. There is the formation of a continuation flag pattern, which just about keeps us bullish, so long as LCID stock remains above $24. A flag pattern, after a strong price move such as that shown, means traders are more willing to accept the new higher prices, and that sets a base for a continuation of the move. In order for that to work though, the price cannot break down below the base at $24. Below that is a strong support zone at $23 to $22 with a strong volume profile at this level and also support from the 200-day moving average.

FXStreet View: bullish above $24.