Why Lucid Group Stock Blasted Higher Monday

What happened

With electric vehicle stocks soaring on Monday, how could shares of luxury electric car manufacturer Lucid Group (NASDAQ: LCID) be far behind? As of 2:30 p.m. EDT, Lucid stock was trading up 11.6%.

However, Lucid Group shares weren't simply riding the broader EV enthusiasm Monday -- investors also got a teaser for what could mark a major upcoming milestone for the company.

So what

Multiple developments in the industry stoked investor activity in EV stocks, led by bellwether Tesla, which bagged a big deal from rental company Hertz even as it announced an increase in prices for its hot-selling models. With both developments reflecting an unstoppable rise in interest in EVs, investors in the sector are stoked.

A Lucid Air car.

Image source: Lucid Group.

In between, Lucid Group piqued investor curiosity on Twitter on Oct. 24: It tweeted a picture of a car carrier trailer carrying six fully wrapped Lucid Air cars on the social media platform. There was no supporting information or press release, and just one picture, but that was enough to send the markets into a tizzy.

Investors are speculating these are the first batch of Lucid Air Dream Edition luxury sedans ready to be delivered. In September, at its much-awaited production preview week, Lucid Group announced the start of commercial production at its Casa Grande manufacturing facilities and confirmed it will start deliveries of Lucid Air Dream Edition late October.

Importantly, Lucid also said it would start by building 520 Dream Edition units, also its most expensive model so far with a price tag starting $169,000, after which it will shift focus to delivering all three of its other Air models, called Pure, Touring, and Grand Touring.

Now what

Lucid recently gave investors a glimpse of its financial strength and growth plans when it revealed pricing and opened reservations for Air Pure in Canada -- its first such confirmed pricing outside the U.S. -- and announced cashless redemption of public warrants. With the company now evidently on the verge of delivering its first luxury cars, investors are even more excited about Lucid's prospects in the red-hot Tesla-dominated luxury electric car space.

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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla and Twitter. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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