Here’s why Lucid Stock is up again today.

stock Lucid Group (LCID 5.61%) It’s rising rapidly today. The electric vehicle (EV) maker has yet to release fourth-quarter production and delivery figures, but data from its peers may give investors some optimism.

As of 11:15 a.m. ET, Lucid’s stock was up 7.9%. This has contributed to a 51% rise in the stock price over the past month.

Concerns about weak EV demand may be misplaced

Investors spent most of 2024 worrying about declining consumer demand for EVs. For this reason, established automakers have slowed down their plans to increase EV production. Yesterday’s sector leader tesla It reported a year-over-year decline in annual deliveries for the first time since it began producing meaningful production levels.

Today is an electric vehicle startup rivian cars It also reported a decline in full-year production, but this was above previous guidance. More importantly for Lucid investors, both Tesla and Rivian have shown something that indicates consumer demand remains healthy.

Rivian’s full-year production exceeded previous guidance, and deliveries were within the range previously provided. However, both Rivian and Tesla reported fourth-quarter vehicle deliveries were above production levels. So both companies have seen inventory declines, which bodes well for their future financial results. Tesla reduced its inventory of vehicles by approximately 36,000 units in the fourth quarter, while Rivian reduced inventory levels of EVs by approximately 1,500 units. This represents the majority of the 2,100 inventory level declines throughout the year.

Savvy investors seem to be taking this as a positive sign for fourth quarter results. It hasn’t released those results yet, but it did so on January 11 last year, so investors will likely get an update on 2024 next week.