KEY POINTS

  • After a recent decline, Lucid shares rebounded on Monday.
  • The EV firm is planning its first international manufacturing facility
  • The best opportunities for success are due to based on technological advancements

What’s going on with Lucid stock

Electric vehicle (EV) manufacturer Lucid’s shares rebounded Monday after losing more than 10% last week. After dropping more than 13% over the previous five days, Lucid Group (NASDAQ:LCID) rose 4.5% Monday morning. The stock gave back most of those gains but remained up about 0.14% as of the market close. 

Why we care

Today, Lucid got new coverage from global institutional banking firm Exane BNP Paribas, giving the EV start-up the equivalent of a buy rating. After its decline last week as BNP praised Lucid’s in-house technologies and Saudi Arabian ties, this helped support the stock.

What now

The Kingdom of Saudi Arabia will become the first foreign country where Lucid plans to build its initial international facility. In 2018, the Saudi sovereign wealth fund invested more than $1 billion in Lucid, helping to finance the company’s Arizona plant. The fund owns a significant stake in Lucid (about 62%), making it a substantial shareholder.

Lucid Motors plans to construct a facility in that nation, with the first phase of production intended to assemble car “kits” that will be pre-manufactured at its Arizona plant. The new manufacturing facility plans to produce as many as 150,000 complete automobiles each year.

Lucid is a technological pioneer in the EV sector, with a battery that provides 520 miles of range on a single charge. Lucid also intends to use its battery technology in home, commercial, and utility-scale energy storage markets for energy storage systems. After pointing out parts of the firm like that, BNP Paribas thinks that Lucid stock is a buy. That has aided the share’s rise today.

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