What Happened?
A number of stocks fell in the afternoon session after bellwether United Parcel Service (UPS) reported weak earnings and withheld its full-year guidance, citing “macro-economic uncertainty” and low consumer sentiment.
The logistics giant reported a decline in revenue and missed profit estimates, sending a chill through the entire logistics chain. UPS pointed to a challenging economic environment and near-historic lows in U.S. consumer confidence as key factors for its performance. By withholding its full-year forecast, the company signaled significant uncertainty ahead, confirming fears of a broader economic slowdown that could impact demand for shipping and freight services. This news weighed on other ground and rail transportation stocks, as investors worried that the headwinds affecting UPS could be a sign of wider issues across the industry.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Rail Transportation company Norfolk Southern (NYSE: NSC) fell 3.2%. Is now the time to buy Norfolk Southern? Access our full analysis report here, it’s free.
- Rail Transportation company Union Pacific (NYSE: UNP) fell 3.2%. Is now the time to buy Union Pacific? Access our full analysis report here, it’s free.
- Ground Transportation company Saia (NASDAQ: SAIA) fell 3.1%. Is now the time to buy Saia? Access our full analysis report here, it’s free.
- Automobile Manufacturing company Lucid (NASDAQ: LCID) fell 7.7%. Is now the time to buy Lucid? Access our full analysis report here, it’s free.
- Heavy Transportation Equipment company Commercial Vehicle Group (NASDAQ: CVGI) fell 5.4%. Is now the time to buy Commercial Vehicle Group? Access our full analysis report here, it’s free.
Zooming In On Lucid (LCID)
Lucid’s shares are extremely volatile and have had 55 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 7.3% on the news that the company announced that all of its Air models will gain access to Tesla's Supercharger network and revealed enhancements for its 2026 vehicle lineup.
Starting July 31, 2025, all Lucid Air owners will be able to use Tesla's expansive North American Supercharger network with an approved adapter, a move that significantly broadens charging options and could alleviate range anxiety for customers. In addition to this expanded charging access, Lucid announced updates for its 2026 models.
The company increased the EPA-estimated range for the Lucid Air Touring model by over 6% to 431 miles and added new standard equipment across the lineup, including an improved air conditioning compressor for better cooling and reduced noise. These enhancements signaled the company's focus on improving customer experience and maintaining its competitive edge in the luxury EV market.
Lucid is down 15% since the beginning of the year, and at $2.58 per share, it is trading 39.6% below its 52-week high of $4.26 from August 2024. Investors who bought $1,000 worth of Lucid’s shares at the IPO in September 2020 would now be looking at an investment worth $260.48.
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