EV Stocks Lucid Group, Rivian Automotive, and Tesla Soaring on Friday: Why?

Lucid Group Inc shares rose dramatically on Friday and were temporarily suspended due to an upward circuit breaker in early afternoon trading. This followed rumors that the Saudi Public Investment Fund was planning to acquire the rest of the electric vehicle company. Benzinga tried to reach out to the Public Investment Fund for a comment but received no response. A representative from Lucid Group stated that the automaker does not comment on rumors or speculation.

Rivian Automotive’s stock also saw an increase in trading, rising more than 7% from the previous day’s close. Tesla Inc also saw a boost of around 10% after reporting strong earnings earlier in the week.

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In addition to the positive earnings in the electric vehicle sector, the Personal Consumption Expenditure index, which is one of the Fed’s main gauges of inflation, came in lower than expected on Friday and is at its lowest point since October 2021. This could signal that inflation is slowing down and the Fed may be able to reduce its interest rate hikes later this year.

The cooling inflation trend is good news for equities, especially growth stocks which have been affected the most by the Fed’s rate hikes. At the time of publication, Lucid Group shares were trading 51.4% higher, Rivian Automotive shares were up 11.6%, and Tesla shares were up 9.8%.

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