The EV maker just announced a 10-year deal with Saudi Arabia
Electric vehicle (EV) maker Lucid Group Inc (NASDAQ:LCID) announced yesterday evening that it reached a 10-year agreement with Saudi Arabia to sell up to 100,000 vehicles, which will include an initial purchase of 50,000 vehicles. These deliveries are estimated to be out by 2023, and the Arizona-based company plans to build its first overseas plant in Saudi Arabia, where it's looking to produce as many as 150,000 EVs per year.
Lucid stock has recovered a little under half of yesterday's 8.7% rout, last seen up 4.1% at $18.36 in premarket trading. It's been a bumpy road for the equity, with a roughly 50% year-to-date deficit under its belt. Pressure at its 10-day has been stiff during the past month, pushing LCID to a six-month low during yesterday's session. It's worth noting, however, that the security's 14-day Relative Strength Index (RSI) of 17 sits firmly in "oversold" territory, indicating a short-term bounce could be on its way.
Short sellers, meanwhile, have been targeting LCID, with short interest rising 7% in the last two reporting periods. The 106.15 million shares sold short make up 6.7% of the stock's available float, or a little under four days' worth of pent-up buying power.
On the other hand, analysts have remained optimistic. Of the four in coverage, three say "strong buy." Plus, the 12-month consensus price target of $38 is a whopping 106.6% premium to current levels.