Shares of Lucid Group (NASDAQ: LCID) were trading 13.2% higher as of 1:15 p.m. ET Thursday after having been up by as much as 15.3% earlier in the session. At the time, the S&P 500 had gained 0.4% and the Nasdaq Composite was up 0.7%.
What happened
The electric vehicle (EV) maker announced Thursday that veteran Lucid engineer Emad Dlala had been promoted to the role of senior vice president of powertrain. Dlala was a central player in the development of many of Lucid's key technologies and vehicle systems, and it's clear that senior leadership has great faith in him.
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"Emad has been instrumental in the development and advancement of Lucid's powertrain technology," CEO and CTO Peter Rawlinson said, asserting that he will bring "exceptional leadership" to the team.
The promotion comes at what could be a make-or-break time for the company. Investors appear to be pleased with the pick, and likely view the choice of an insider as a confident move by management; leadership doesn't feel the need to look elsewhere for expertise despite the mounting pressure on the business.
What's next
Lucid's sales growth has flattened over the last few quarters while costs have risen, and it's still operating at a significant loss. It's crucial that the rollout of its newest model, an SUV, be successful. However, with consumer preferences shifting toward a greater emphasis on affordability -- and with President Trump aiming to end the federal EV tax credit -- it's unclear how well an electric SUV with a base price of around $80,000 will be able to compete.
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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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