Lucid Group (LCID) shares are on the rise today, getting a big boost as the electric vehicle (EV) maker announced it’s been added to the Nasdaq-100 Index. Lucid shares will be added prior to the market open on December 20, 2021.
“We are proud to join the prestigious Nasdaq-100 Index, a recognition of our progress establishing Lucid in the EV market and our future growth strategy,” Sherry House, Lucid’s CFO said in a statement.
Around this time every year, the Nasdaq updates its tech-focused Nasdaq-100, shaking out poor performers and adding some of the new high fliers, as market capitalizations for these companies fluctuate. Inclusion in the Nasdaq-100 requires a company’s stock have an average daily trading volume over 200,000 shares, and the company must be listed on a major exchange for at least 3 months.
Along with Lucid, the Nasdaq added Airbnb, Inc. (ABNB), Fortinet (FTNT), Palo Alto Networks (PANW), Zscaler (ZS), and Datadog (DDOG) to the index. Companies removed from the index are CDW (CDW), Fox Corporation (FOXA), Cerner (CERN), Check Point Software Technologies (CHKP), Trip.com Group (TCOM), and Incyte (INCY).
Listing on an index like the Nasdaq-100 typically is positive news for a company’s stock, because index funds and mutual funds that track the Nasdaq-100 will have to add these new index entrants to their funds. This, in turn, boosts the value of shares and liquidity, giving companies more value for their stock in case they need to issue new shares to raise money.
Lucid stock has been hammered recently, following news of a convertible debt offering, as well as disclosure that the company was being investigated by the SEC into its SPAC merger with blank check company Churchill Capital IV, over “certain projections and statements.”
On the bright side, with news of its inclusion into the Nasdaq-100, the Lucid Air sedan winning Motor Trend’s car of the year, and CEO Peter Rawlinson claiming a cheaper $70,000 Air sedan is coming by the end of next year, 2022 is shaping up to be a big one for the American EV-maker.
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Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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