Why Lucid Group (LCID) Is Among Tuesday’s Worst Performers?

We recently published a list of 10 Stocks Nosedive, Defying Broader Optimism. In this article, we are going to take a look at where Lucid Group, Inc. (NASDAQ:LCID) stands against other stocks nosedive, defying broader optimism.

Ten companies—predominantly Bitcoin miners—kicked off this week’s trading on a sour note, bucking an overall market optimism, following the lack of fresh developments to spark buying appetite.

On Tuesday, the Dow Jones rose by 1.24 percent, the S&P 500 rose 0.88 percent, while the Nasdaq Composite increased 0.64 percent.

In this article we will look at Tuesday’s worst performers and explore the reasons behind their drop.

To come up with Tuesday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily 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’s (NASDAQ:LCID) shares fell for a second day on Tuesday as investors sold off positions following President Donald Trump’s national energy emergency and that he would remove the electric vehicle (EV) mandate put in place by the Biden administration.

The mandate would have required 67 percent of new vehicles and 32 percent of medium vehicles produced in the US to be all electric by 2032.

Lucid Group, Inc. (NASDAQ:LCID), a luxury EV maker, dropped its share prices alongside Tesla Inc., which dipped by 0.57 percent.

With the implementation of the new Trump administration policy, US energy policy is expected to shift toward a less supportive stance on the EV industry. Alongside the removal of the EV mandate, there are strong indications that the administration will also phase out federal subsidies and tax rebates currently offered to consumers purchasing electric vehicles.

Overall, LCID ranks 9th on our list of stocks nosedive, defying broader optimism. While we acknowledge the potential of LCID as an investment, our conviction lies in the belief that 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 more promising than LCID but that 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.