Why Lucid Group, Inc. (LCID) Went Down On Monday?

We recently published a list of 10 Stocks Drop The Most Amid Investor Caution. In this article, we are going to take a look at where Lucid Group, Inc. (NASDAQ:LCID) stands against other stocks that drop the most amid investor caution.

Wall Street kicked off the first trading day of the week on a sour note, with all the major indices closing mixed as investors chose to stay on the sidelines while waiting for further updates on key economic news, including trade tariffs and government spending, among others.

The Dow Jones was the sole gainer among all major indices, eking out a 0.08-percent gain. In contrast, the S&P 500 and the tech-heavy Nasdaq both fell 0.50 percent and 1.21 percent, respectively.

Meanwhile, we have compiled a list of 10 companies that mirrored the broader market downturn and detailed the reasons behind their drop.

To come up with Monday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

Note that the companies we covered in-depth last Friday have been excluded from the list.

An engineer examining an electric vehicle design in a lab, showing the company’s innovative battery systems.

Lucid Group, Inc. (NASDAQ:LCID)

Lucid Group, Inc. (NASDAQ:LCID) saw its share prices decrease for a fourth straight day on Monday, dropping 9.15 percent to finish at $2.78 apiece as investors adjusted their holdings in the company ahead of its earnings release while also digesting the downgraded rating from an investment research firm.

On Monday, Redburn-Atlantic adjusted its rating for Lucid Group, Inc. (NASDAQ:LCID) to “sell” from “neutral,” while giving a steep decline in its price target to $1.13 from $3.5 previously.

According to Redburn, Lucid Group, Inc. (NASDAQ:LCID) is expected to face challenges from its competitors particularly in matching the efficiency of its vehicles before 2030.

Earlier this month, LCID announced the promotion of Emad Dlala to Senior Vice President of Powertrain, whose role in the company has been instrumental in the development and advancement of Lucid’s powertrain technology.

Dlala has been with Lucid in various technical roles since 2015 where he led efforts to develop breakthrough technologies that achieved unmatched range and performance in the Lucid Air and leading technologies in the Lucid Gravity.

Overall, LCID ranks 6th on our list of stocks that drop the most amid investor caution. While we acknowledge the potential of LCID as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LCID but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.