Lucid Group Inc (NASDAQ:LCID) shares are trading lower by 1.78% to $6.13 Wednesday morning amid overall market weakness. Downward pressure on the market this week is being exacerbated by elevated oil prices, reaching their highest point since November 2022 due to Saudi Arabia and Russia extending their voluntary supply reductions. Rising Treasury yields are also responsible for the downward pressure on risk assets.
Lucid Group, like many growth companies, may rely on external financing to fund its expansion and operations. As Treasury yields rise, interest rates across the market tend to increase. This means that Lucid would likely face higher borrowing costs if it needs to raise capital through debt issuance.
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Rising Treasury yields can prompt some investors to shift their portfolios away from riskier assets like growth stocks and toward safer assets like bonds.
This rotation of funds can lead to selling pressure on growth stocks, including Lucid, causing their prices to fall as demand wanes.
According to data from Benzinga Pro, LCID has a 52-week high of $17.81 and a 52-week low of $5.46.
