Lucid Group

Stock: LCID

Rating: Strong Buy

Author: Waleed M. Tariq

Background information

  • Peter Rawlinson and Derek Jenkins, formerly of Tesla and Mazda, founded Lucid.
  • LCID went public in July through a SPAC and PIPE.
  • The IPO raised $4.4 billion for the company’s expansion aspirations.

Bullish

  • The corporation has plenty of cash and bright intentions for the future.
  • MotorTrend named it car of the year above Tesla and Porsche.
  • Lucid, a Tesla challenger, just led the EV market. Lucid’s stock could grow soon, so I’m considering buying.

Bearish

  • The company’s current financial state makes it difficult to assess its future value, therefore the future may be uncertain.

Product difference

  • Tesla dominates the EV industry. Lucid’s success is daring. Here’s how they fared.
Price

The top-of-the-line Lucid Air Dream costs little under $170,000.
Tesla’s Model S plaid costs $130,000.

Range

This is the most crucial criterion, as range concern persists.
Farthest Lucid Air’s range is 520 miles.
Farthest Tesla Model plaid has a 375-mile range.

Horsepower

Lucid Air dream’s top configuration has 1,111 hp.
1,020 horsepower power the Model S plaid.

Charging

When linked to a DC Fast Charging network, Lucid Air’s built-in bi-directional “Wunderbox” battery charger can add 300 miles in 20 minutes and 20 miles in one minute.
This is faster than Tesla’s 200-mile-per-15-minute supercharging network.

Awards
  • Above-mentioned differences are noticed. MotorTrend named the Air Dream 2022 Car of the Year. An excellent list of cars.

The future

  • The company plans to launch Lucid Air in Europe in 2022 and China in 2023. While Gravity will debut in North America in 2023.
  • The new factory in Casa Grande, Arizona, has a 34,000-vehicle-per-year capacity and will reach 90,000 by 2023.
  • The company plans to generate 365,000 units per year in three years. Lucid’s expansion goal includes mass-producing cheaper models and generating 500,000 vehicles a year.

Mass-market EVs

  • International Energy Agency: 10 million electric automobiles on global highways by 2020. Despite a global car sales decline of 16% due to pandemics, electric car registrations rose 41% in 2020.

Conclusion

  • LCID appears to compete and in some ways surpass Tesla, a trillion-dollar company.