Lucid Motors stock price experienced a minor rally early in the week, rising to $3.62, as traders speculated on potential Middle East investment news influencing stock momentum. Lucid reported a Q1 2025 revenue of $235 million, a year-over-year increase of 36%, and a net loss nearly 50% lower than the same quarter last year—$366 million compared with 2024’s $681 million. While brokerages were quite enthusiastic about EV stocks a couple of years ago, sentiment has soured given the changed macroeconomic environment. The EV story was built on the premise of faster adoption and supportive government policies. However, there are cracks on both the front, particularly the latter, with the Trump administration eliminating the EV tax credit, which prompted Tesla (TSLA) CEO Elon Musk to warn about a “few rough quarters.” Moreover, the One Big Beautiful Bill Act does away with penalties on automakers that do not meet emission standards, thereby effectively ending EV companies’ booming regulatory credit business. Trump’s tariffs have also been a headwind for automakers, and Lucid took a tariff hit of $54 million in Q2. Lucid Motors stock price trendlines point towards potential downside risk if the $3.45 support level fails, with short sellers increasing positions by 5% week‑over‑week.
