Lucid Group Inc's (LCID) stock price witnessed a sharp decline of 7.85% during intraday trading on Friday, underperforming the broader market. The sell-off can be attributed to a combination of factors, including bearish macroeconomic indicators and disappointing guidance from a rival electric vehicle (EV) manufacturer.
The electric vehicle sector, along with the broader market, faced significant selling pressure on Friday. Investors grew cautious about the health of the U.S. economy after the latest economic data painted a gloomy picture. Soft readings from the University of Michigan's consumer confidence survey and the S&P Global Purchasing Managers' Indexes (PMIs) for manufacturing and services raised concerns about inflationary pressures and potential headwinds for consumer demand.
Furthermore, Lucid's stock was likely impacted by the guidance provided by Rivian, another prominent player in the EV market. Despite reporting better-than-expected fourth-quarter results, Rivian's forecast for a decline in vehicle deliveries this year could be interpreted as a bearish signal for the overall EV industry. This development might have contributed to the valuation pullback observed in Lucid's stock price.
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