At this pace, I would not be surprised to see the company hit 20,000 reservations in the very near future - it is also possible that this level has already been hit, although there was no announcement so far. In mid-November, Lucid reported that its reservations totaled more than 17,000, up by 30% in just six weeks.
Thanks to the great reviews Lucid's Air Dream has received so far, and thanks to the excellent design of its vehicles, demand for Lucid's products has risen sharply over the last couple of months, as Lucid and its products received more attention. Not too many vehicles are on the road yet, and there is no long-term data available yet, but from what we see and hear today, production issues such as faulty paint or similar quality control issues have been avoided - which is not a given for new entrants in this industry.
On top of Lucid's strong tech, it also features a great brand, excellent design, and high manufacturing quality. Lucid's charging tech is very strong as well, as the company offers a 900+ Volt architecture, which allows for extremely fast charging - the company is able to deliver up to 300 miles worth of electricity in just 20 minutes, again outpacing the competition easily. That is a strong feat for Lucid, which is a newcomer in the EV space and which still managed to easily beat its more established competitors in that regard. Its tech looks extremely strong, showcased by the record-setting 500+ miles of range for its first vehicle, the Air Dream, which easily beat the competition, including Tesla's highest-priced models. It seems, I believe, prudent to account for some potential delays and production issues for all new entrants in the EV space, including Lucid, Rivian, and so on.Īt the same time, however, Lucid also has major advantages. It is possible, of course, that Lucid will execute better than Tesla by learning from the experiences other EV manufacturers have made in the past, but investors should nevertheless not assume that Lucid will not experience any headwinds at all. The fact that Lucid is still in the very early stages of ramping up its production is negative, of course, and there are considerable execution risks - Tesla, for example, has shown repeatedly that meeting production targets on time is not an easy task. This differentiates it from peers such as Tesla ( TSLA), NIO ( NIO), XPeng ( XPEV), and others that have successfully built and sold 100,000 to 1,000,000+ vehicles in their history. Lucid Group is a relatively young EV player that has not manufactured a significant number of vehicles yet. It is, of course, possible that LCID's price target sees material upward or downward revisions going forward, driven, for 2022: A Year Of Accelerating Growth, But With Risks This suggests that LCID does not have material upside potential over the next year, as price targets are usually given with a 12-month time frame. is valued almost perfectly in line with what analysts deem fair value. Sentiment has cooled off to some degree since as shares have recently declined to the high-$30s again - which is still up quite a lot over the last six months, however: Data by YChartsĪt current prices, Lucid Group, Inc.
EV enthusiasm was growing at that time as RIVN made a big splash with its IPO, while Lucid also received the MotorTrend Car of the Year award in mid-November, amplifying demand for Lucid's shares. has seen its shares rise by 70% over the last six months, with most of that share price growth occurring in November. Lucid could see further upside in 2022 if EV enthusiasm holds, but especially if interest rates were to climb next year, Lucid Group could also see its shares come under pressure - which also holds true for most of LCID's peers. Going forward, however, execution when it comes to scaling up the company's manufacturing operations will be important, and investors will possibly also focus more on Lucid's valuation - which is pretty high. ( NASDAQ: LCID) has seen its shares rise considerably over the last couple of months on the back of growing EV enthusiasm driven by the Rivian Automotive ( RIVN) IPO and due to the fact that Lucid's first car, the Air Dream, has received great reviews and won the Car Of The Year award. Eugene Gologursky/Getty Images Entertainment Article Thesis
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