Why Lucid Group Inc. (LCID) Soared On Tuesday?

We recently published a list of 10 Stocks That Led Tuesday’s Charge. In this article, we are going to take a look at where Lucid Group Inc. (NASDAQ:LCID) stands against other stocks that led Tuesday’s charge.

The stock market finished Tuesday’s trading in the red territory anew, erasing two consecutive days of gains, as investors repositioned their portfolios ahead of the Fed rate decision on Wednesday.

The Nasdaq registered the biggest drop among Wall Street’s main indices, declining 1.71 percent, followed by the S&P 500 with 1.07 percent, and the Dow Jones by 0.62 percent.

Despite the decline, ten companies showed off resilience during the session, finishing with modest gains. In this article, we have named the 10 top performers and detailed the reasons behind their gains.

To come up with the list, we only considered the stocks with a $2-billion market capitalization and $5 million in trading volume.

An engineer examining an electric vehicle design in a lab, showing the company’s innovative battery systems.

Lucid Group Inc. (NASDAQ:LCID)

Lucid Group extended its winning streak for a third straight day on Tuesday, closing 8.8 percent at $2.35 each as investors snapped up shares in the company after receiving a rating upgrade from an investment firm.

In its latest report, Morgan Stanley assigned LCID with an “underweight” rating, an upgrade from the “equal weight” rating previously.

It also gave the company a new price target of $3, or a 27.7-percent upside from its Tuesday closing price.

According to Morgan Stanley, it believes that LCID has the opportunity to execute an AI strategy leveraging strategic partnerships with the context of urgency to develop onshore manufacturing capacity for Battery Electric Vehicles as the socket for the AI brain.

“While [LCID] can continue to license out their industry-leading drivetrain technology to legacy OEMs, we see the real value in potential partnerships with AI/ADAS players for advancing autonomy in a software-defined EV socket,” Jonas added.

Overall, LCID ranks 2nd on our list of stocks that led Tuesday’s charge. While we acknowledge the potential of LCID as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as LCID but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.