Why Did Lucid Stock Just Pop?

Lucid Group stock rose 7.8% on Monday following a UBS upgrade of rival Rivian Automotive to 'buy,' citing strong R2 demand. However, the article cautions that while Rivian may be attractive, Lucid faces more severe challenges with negative gross margins, minimal cash reserves ($760M), and significant cash burn ($5.1B annually), making it a riskier investment despite the stock pop.