Lucid Group Inc (NASDAQ:LCID) shares are trading higher by 2.27% to $7.00 Wednesday morning, despite a lack of company-specific news for the session. The stock is trading higher amid overall market volatility ahead of Wednesday afternoon’s Fed decision.
Lucid Motors, as an electric vehicle manufacturer, may rely on borrowing to fund its operations, research and expansion plans. If the Fed raises interest rates, it could increase the cost of borrowing for Lucid, affecting its ability to access credit at favorable terms and potentially impacting its financial flexibility.
Additionally, Lucid is in the process of ramping up production and expanding its product offerings. Higher interest rates could lead to increased capital expenses, impacting the company’s investments in manufacturing facilities and research & development projects.
So What’s Going On With The Fed?
If the Federal Reserve raises rates Wednesday afternoon, it will bring the fed funds rate to its highest level in more than 20 years. Former Atlanta Fed president Dennis Lockhart says the Fed has to follow through with a rate hike following last month’s pause.
The two-day FOMC meeting will come to a close Wednesday and most expect the committee to raise rates another 0.25%, bringing the target fed funds rate up to a range of 5.25% to 5.5%, including Lockhart…Read More
According to data from Benzinga Pro, LCID has a 52-week high of $20.62 and a 52-week low of $5.46.
