What Happened?

Shares of luxury electric car manufacturer Lucid (NASDAQ: LCID) jumped 13.4% in the afternoon session after the company announced it had deepened its collaboration with Rockwell Automation to support its expanding manufacturing facility in Saudi Arabia. 

The partnership with Rockwell Automation is focused on Lucid's growing production plant. This development was part of Lucid's larger push in the electric vehicle market. The collaboration aimed to enhance the manufacturing capabilities at the Saudi Arabian factory, a key part of the company's international plans. Investors likely viewed this strengthened partnership as a positive step for Lucid's production and growth prospects.

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What Is The Market Telling Us

Lucid’s shares are extremely volatile and have had 53 moves greater than 5% over the last year. But moves this big are rare even for Lucid and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 29 days ago when the stock dropped 4.4% on the news that prominent market commentator Jim Cramer recommended investors sell the stock. 

Cramer's bearish sentiment, which included a “sell, sell, sell” comment, came as the electric vehicle maker faced significant challenges. The company was burning through large amounts of cash, using over $950 million in the most recent quarter alone. Lucid also operated with negative gross margins, meaning it lost money on the cars it sold. These financial pressures existed alongside production setbacks and concerns about weakening demand for EVs.

Lucid is flat since the beginning of the year, and at $11.07 per share, it is trading 68.2% below its 52-week high of $34.80 from February 2025. Investors who bought $1,000 worth of Lucid’s shares 5 years ago would now be looking at an investment worth $62.17.

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