Lucid shares soar after being added to Nasdaq 100 Index

Lucid Group LCID shares are on the rise today, getting a boost as the electric vehicle EV maker announced it has been added to the Nasdaq 100 Index. Before the market opens on December 20, 2021, Lucid shares will be added.

In a statement, Lucid s CFO Sherry House said that they were proud to join the prestigious Nasdaq 100 Index, a recognition of our progress establishing Lucid in the EV market and our future growth strategy.

Inclusion in the Nasdaq 100 requires a company's stock to 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. The 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, because index funds and mutual funds that track the Nasdaq 100 will have to add these new index entries to their funds. This 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.

The news of a convertible debt offering, as well as the fact that the company was being investigated by the SEC into its SPAC merger with blank check company Churchill Capital IV, has hammered the stock recently, as well as disclosure that the company was being investigated by the SEC over certain projections and statements. With the 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.