- Lucid Group shares rise on buyout rumors.
- Electric vehicle companies' stocks up, Tesla reports strong earnings.
- Cooling inflation and potential rate hike easing good for growth stocks.
Lucid Group Inc's shares were on a steady rise on Friday, with traders circulating rumors that the Saudi Public Investment Fund is planning to buy out the remaining shares of the electric vehicle company. The stock was halted temporarily on a circuit breaker to the upside in early afternoon trading as a result. News outlets such as Benzinga have reached out to both the Public Investment Fund and Lucid Group for comment on the rumors, but have yet to receive a response.
In addition to Lucid Group's stock price increase, other electric vehicle companies also saw a rise in their stock prices. Rivian Automotive's stock traded higher on Friday afternoon, with shares rising more than 7% from Thursday's close. Tesla Inc also saw a boost in its stock price, trading higher by about 10% Friday afternoon after reporting strong earnings earlier in the week.
The strong earnings in the electric vehicle space, combined with the Personal Consumption Expenditure index, which is one of the Federal Reserve's key measures of inflation, coming in cooler than expected on Friday morning, is a sign that inflation is cooling and the Fed may potentially ease its rate hikes at some point this year. The cooling inflation is generally good news for most equities, but especially growth stocks which have been hit the hardest by the Fed's interest rate hikes.
At the time of publication, Lucid Group's shares were trading at 51.4% higher, Rivian's at 11.6% higher, and Tesla's at 9.8% higher. This indicates that the market is reacting positively to the rumors of the Saudi Public Investment Fund's potential buyout of Lucid Group, as well as the strong earnings reports in the electric vehicle industry and the cooling inflation.
It remains to be seen if the rumors are true, and if the Public Investment Fund will make an official announcement on their plans for Lucid Group.