Why Lucid (LCID) stock is crashing

Core Insights - Lucid Motors' stock saw a significant increase from $2.09 to$2.76 due to a resurgence in the electric vehicle sector and a $1 billion investment from the Saudi Public Investment Fund after BlackRock sold over 2 million shares [1] - The production of Lucid's new model, Lucid Gravity, has begun, which initially boosted investor optimism [2] - However, on December 18, the stock price fell by 8.33$2.53, largely due to broader market reactions to the Federal Reserve's announcements [2][4] Company-Specific Developments - The $1 billion injection from the Saudi Public Investment Fund is a critical support for Lucid Motors following BlackRock's significant share sell-off [1] - The commencement of production for the Lucid Gravity model is a positive development for the company, indicating progress in its product lineup [2] Market Context - The Federal Reserve's decision to cut interest rates by 25 basis points, coupled with warnings of fewer reductions in 2025 and an upward revision of inflation forecasts from 2.1$300 billion in market capitalization [5] - Despite the market turmoil, there are indications that the impact on Lucid Motors may not be as severe, as evidenced by a slight recovery in its stock price in after-hours trading [6]