Tesla’s stock is getting trounced by EV challenger Lucid, which is leading techs’ 2023 rally thanks to Saudi takeover rumors

Tesla’s stock is getting trounced by EV challenger Lucid, which is leading techs’ 2023 rally thanks to Saudi takeover rumors

Shares in electric-vehicle manufacturer Lucid Motors have jumped 69% in 2023.

It's even outperforming rival Tesla, which is up a still-stellar 60% year-to-date.

Speculation of a takeover by Saudi Arabia's sovereign wealth fund has fueled Lucid's recent rally.

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Electric-vehicle maker Lucid Group has started 2023 with a breakneck rally that's made it the best-performing stock on the entire Nasdaq Composite.

Its shares have climbed 69% year-to-date, trading at $11.57 as of Tuesday's closing bell. That makes Lucid the top performer on the tech-heavy index, which itself has jumped 15.7% since January 1.

Lucid is even beating rival EV manufacturer Tesla, which is up just under 60% so far this year at $196.81, despite analysts' fears.

Tech stocks have started 2023 with a bang, thanks to investors' growing expectation that the Federal Reserve will have to abandon hikes and start cutting interest rates later this year to support the US economy. Equities tend to rally when interest rates fall, because a lower cost of borrowing boosts the future cash flows that make up part of companies' valuations.

Lucid shares have also risen thanks to rumors