![]() ![]() Lucid’s flagship luxury EV sedan is called the “Air” and the Dream Edition of the Air model goes for around $169,000. Lucid Group is headed by CEO Peter Rawlinson, who was a former chief engineer for Tesla. As a result of the merger, the largest SPAC deal so far according to Business Insider, the company effectively raised $4.5 billion and sidestepped the IPO process to become a public company through acquisition. In July 2021, Lucid Group became a public company as a result of a merger with Churchill Capital IV Corp., a SPAC (special purpose acquisition company) trading on the NASDAQ stock exchange. In 2019, Lucid Motors received a funding commitment from the Public Investment Fund of Saudi Arabia for over $1 billion ( Wikipedia). The company originally made powertrains and batteries for other EV manufacturers, but in 2016, branded itself as Lucid Motors, and began making luxury electric vehicles that compete with companies like Tesla, Nikola, and Rivian. ![]() ( LCID) was founded in 2007 and is headquartered in Newark, California. JannHuizenga/iStock Unreleased via Getty Images About Lucid Group Inc. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. LCID stock is a buy.ĭisclosure: On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. That focus on quality could help to distinguish Lucid Motors’ products, drive sales and push the share price to new heights. While some investors were spooked when the company pushed back the start of production by about six months, Chief Executive Officer (CEO) Peter Rawlinson has made clear that the delay is to give Lucid Motors more time to perfect the quality of its electric vehicles. Investors would be smart to take a position in Lucid Motors before production on the company’s Air sedan begins in the coming months. Buy LCID StockĪlthough it is by no means a slam dunk, LCID stock is attractive at its current price of under $25 a share. It is instructive to note that the share price was as high as $64.86 earlier this year when Lucid Motors’ plans to go public via a reverse merger with a SPAC were first announced. More than a few have noted that the company should distinguish itself in the increasingly crowded electric vehicle sector with its high-end luxury sedan and SUV. While it’s too early for Wall Street analysts to assess the company with ratings and price targets, many media and industry observers remain enthusiastic about Lucid Motors and the long-term prospects for LCID stock. Saudi Arabia’s Public Investment Fund made a $20 billion profit on an investment of $2.9 billion when LCID stock debuted on the Nasdaq exchange. ![]() In 2018, Saudi Arabia’s sovereign wealth fund invested in the company and today holds an ownership stake of more than 60%. While it’s still a newly public company, Lucid Motors has gotten a vote of confidence from the investors it has been able to attract in recent years. If all goes according to plan, Lucid Motors plans to begin selling the Air throughout Europe early next year (2022).Ī second electric vehicle from Lucid Motors, an SUV called the “Gravity,” is slated to enter production in 2023. The company has said that it has received more than 10,000 pre-orders for the Lucid Air. A luxury electric vehicle that retails for $169,000 and can travel 500 miles on a single battery charge, the Lucid Air is seen by many analysts as one of the few real competitors to Tesla’s (NASDAQ: TSLA) electric sedans. The company’s Lucid Air sedan is scheduled to begin production this fall. Lucid Motors is well-positioned to capitalize. Part of the decline can be attributed to the fact that Lucid Motors went public via a less traditional SPAC at a time when such deals have fallen out of favor among investors and Wall Street dealmakers. LCID stock has had a rough ride since the company went public on July 26 via a reverse merger with a special purpose acquisition company (SPAC).Īfter opening at $27 a share, the stock has fallen 13% to its current level of $23.47. Once the cars start rolling off the production line, today’s prices likely will be a thing of the past. While it is true that the company is still technically a start-up, Lucid Motors is already at the production stage, putting it swell ahead of competing electric vehicle makers, many of whom are sketching out designs on restaurant napkins. Investors hungry for gains and exposure to the fast-growing electric vehicle market should see the current price of LCID stock as a great entry point.Īt around $22 a share, the stock is a bargain and sure to be much higher this time next year after its Lucid Air luxury sedan is on sale. ![]()
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