Is Lucid Motors a Buy as its Merger Approaches? Worse yet, continued unprofitability could have a negative impact on the stock. I was the Battalion Second-in-command of an Armored Regiment. Lucid Motors is renowned for its flagship electric sedan, the Lucid Air. Access advanced stock screeners, portfolio monitoring tools, proprietary research reports, and more. As of November 18, 2022, the firm operates 29 retail studios in the U.S. and 32 globally. If that sounds like a big deal, its because itis. It was the 2022 Motor Trend Car of the Year, regarded as one of the most prestigious awards in the automotive industry. It is anticipated to hit the roads in 2024. Current Price. Where Tesla stands to lose a lot of market share, we think Lucid can step in and dominate. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities. Entering text into the input field will update the search result below, also have plants in other parts of the world, in the Middle East and in China. As this figure came in ahead of its most recent guidance (between 6,000 and 7,000 vehicles), this may suggest that the supply chain bottlenecks that forced Lucid to cut back production targets several times have eased. Today, few are holding out on Lucid Group (NASDAQ:LCID) as a possible Tesla (NASDAQ:TSLA) in the making. So I think scaling up volume is well within our sights. The company's average rating score is 2.13, and is based on 3 buy ratings, 3 hold ratings, and 2 sell ratings. Lucid Groups cash used in operating activities grew by 126% to account for costs associated with phase-2 of its EV production facility. Lucid Group Inc., an electric-vehicle startup, is now crossed Ford Motor Co. in market value. After Lucid Group announced its Q1 2022 financial results, Citigroup lowered its price target to $36 from $45 but maintained a buy rating. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. And that makes Lucids job much easier. Tesla cancelled its Model S Plaid+, its 500-plus mile range version, and the only version capable of rivalling Lucid Motorss Air Dream Edition in terms of range. And by the end of 2020, Tesla was worth $650 billion. We, . Looking forward, we remain intently focused on ramping production and are excited about our product roadmap in 2022 and beyond with Air Grand Touring Performance deliveries expected in June; Air Touring and Air Pure later this year; and with our Project Gravity SUV remaining on target to begin production in the first half of 2024., With todays signing ceremony, we are taking a major step towards Saudi Arabias goal of diversifying its economy by creating a new manufacturing hub to spearhead the future of mobility for the Middle East region. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. On Thursday, LCID shares skidded around 4%, trading around 22.06. Why Is SoFi Stock Down After Earnings? This suggests a possible upside of 33.3% from the stock's current price. In its Lucid Motors stock predictions for 2025 to 2026, it anticipated the price to close at $49.390 and $57.352 by the end of each year, respectively. Therefore, we think Lucid investors must consider and monitor the company's progress in software very carefully against tough competition. This could be highly dilutive to investors buying today. Get daily stock ideas from top-performing Wall Street analysts. Not so fast. Is SoFi Stock a Buy Now? 2023 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Insider reported (edited): A former Lucid employee said that Rawlinson wants to do "in two years in software what Tesla has done in 13. Our daily ratings and market update email newsletter. I wrote this article myself, and it expresses my own opinions. Trading is a highly risky business, please consult with your financial advisor before making any decision. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. And if those gains are as large as we expect, LCID stock will power much higher. Having said that, achieving triple-digit sales growth may not be enough to drive a comeback for LCID shares. What Will Lucid Stock Be Worth In 5 Years? As far as Im concerned, the skys the limit. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. contact@marketbeat.com The value of shares and ETFs bought through a share dealing account can fall as well as rise, which could mean getting back less than you originally put in. Lucid Motors stands out for its groundbreaking technological innovation, vertical integration and clean-sheet approach to engineering and design. If you are looking for stocks with good return, Lucid Group Inc stock can be a bad, high-risk 1-year investment option. Lucid Group generated a negative expected return over the last 90 days: Lucid Group has high historical volatility and very poor performance: The company reported the previous year's revenue of 608.18 M.Net Loss for the year was (1.3 B) with loss before overhead, payroll, taxes, and interest of (1.04 B). You're going to see that our gross margins are not going to be there initially because we're activating depreciation expense, we're training new employees, we're going to be driving efficiency within the manufacturing arena over the next year, especially the next 1.5 years. Should you keep money in the bank during recession? If it doesnt, the stock will fall. But sometimes, even great things must come to an end. Learn More. Lucid Motors' car sales in 2025. See:https://seekingalpha.com/article/4578688-seeking-alpha-contributor-community-2022-by-the-numbers. Lucid believes it can generate approximately $2.2 billion in revenue this year by shipping 20,000 vehicles. Lucid wants to massively expand globally and could be in line for a great short squeeze soon. The wild moves Lucid stock made earlier this year, when the former SPAC (special purpose acquisition company) went from $10 to more than $60 per share aren't likely to repeat themselves. We also have plants in other parts of the world, in the Middle East and in China. So I think scaling up volume is well within our sights. says. Lucid Motors teased an electric SUV concept in September 2020 called Project Gravity, featuring an image and brief video clip. Lucid will incur its biggest expenses throughout 2022 and 2023. 1125 N. Charles St, Baltimore, MD 21201. Lucid Group's stock is owned by many different institutional and retail investors. In terms of cash flow, Lucid expects that it will allocate $1.9 billion for capital expenditures (capex) in 2023 -- the highest amount over the next five years -- presumably to prepare for the production of its SUV that's planned for that year. Welcome to Capital.com. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Although far cheaper than it was at its high-water mark, LCID stock is pricey relative to the companys current operating results. 84% of retail investor accounts lose money when trading CFDs with this provider. It also intends to launch its first SUV, the Lucid Gravity, that same year. How can I listen to Lucid Group's earnings call? If the same 57% growth estimate is used, the stock will reach $66 by the year 2023. Based on the belief that it'll sell about 1,000 vehicles this year, Lucid expects to book $97 million on the top line. Compare Top Brokerages Here. Shares of Lucid Motors are more than 50% off their 52-week high and not at a proper buy point, so the stock is not a buy right now. Tesla's annual shipments rose from 22,477 vehicles in 2013 to 499,550 vehicles in 2020. However, analysts forecasts can be wrong and have been inaccurate in the past. Thomas Niel, contributor for InvestorPlace.com, has been writing single-stock analysis for web-based publications since 2016. American Consumer News, LLC dba MarketBeat 2010-2023. Join thousands of other investors who make better investing decisions with our premium tools. Taking a closer look, the stock remains at high risk of languishing for years in the stock market junkyard. Top institutional investors include Simplex Trading LLC (0.00%), Sumitomo Mitsui Trust Holdings Inc. (0.07%), IMC Chicago LLC (0.00%), SG Americas Securities LLC (0.04%), State of New Jersey Common Pension Fund D (0.02%) and abrdn plc (0.02%). Investors remained optimistic about Lucid for three simple reasons. If we assume (again) that the company meets its revenue forecast, it will translate to a free cash flow margin of 6.7%, the same margin that Tesla has reported over the past 12 months. Capital Com SV Investments Limited is regulated by Cyprus Securities and Exchange Commission (CySEC) under license number 319/17. It expects its annual shipments to nearly double to 500,000 by 2030. Positive dynamics for Lucid Group shares will prevail with possible volatility of 2.604%. In seeking to grow vehicle deliveries from less than 1,000 in 2021 to 251,000 five years later, management clearly anticipates considerable success in convincing customers to hop into its driver seats. Lucid Group has received a consensus rating of Hold. You can buy Lucid Motors stock now under the ticker 'LCID' on the Nasdaq exchange. This may present even more upside for the stock. The long-term earning potential for investors is +7.44% per year. To achieve this, it invests in its research and development initiatives, reporting $186.1m for R&D expenses for Q1 2022 11% higher than its outlay of $167.4 in Q1 2021. Lucid is the new "range king," and is getting ready for volume production. In a 10 May press release, it announced its first European retail location would be initiated in Munich, Germany. Lucid Motors also estimates that it will deliver over 20,000 vehicles by the end of 2022. Admittedly, its up in the air where exactly Lucid Group will be five years out. As of the end of January 2023, speculation suggested that the Saudi Arabia Public Investment fund would discuss a buyout of Lucid Group Inc. Lucid Motors is also involved in the Formula E racing series. Therefore, there's a lot for Lucid to prove from here in terms of its production capability. All rights reserved. Fox News announced in an abrupt statement it will "part ways" with longtime host Tucker Carlson, seen by many as the face of the network's brand. Earnings per share (EPS) came in at -$0.05 better than analysts expectations of -$0.29, based on data by Seeking Alpha. Second, even if the company successfully continues to scale up at a healthy clip, reaching profitability could remain elusive in the years ahead. Lucid (LCID) to Report Q1 Earnings: What's in the Offing? While Tesla (TSLA -1.51%) holds the pole position as the most recognizable luxury EV maker, Lucid Motors -- soon to merge with the SPAC Churchill Capital IV (CCIV) -- is racing ahead in its attempt to challenge the EV king of the road. How many times does Coca Cola pay dividends? Better EV Stock: Lucid Group vs. Faraday Future, Despite Its Falling 92%, Cathie Wood Is Buying More of This Growth Stock. What will Lucid stock be worth in 2030? (from Lucid's FQ3'21 10-Q). But what were really looking at is Lucids impending superiority in the EV industry in the more distant future. Lucid Motors stock is a promising long-term EV stock that started deliveries of its first electric vehicle in late Oct. 2021. Lucid Group's stock was trading at $6.83 at the beginning of 2023. What Will Lucid Stock Be Worth In 5 Years. 62.50% of the stock of Lucid Group is held by insiders. Lucid Motors is in line for a huge 2022. Lucid Group Delivers 1,406 Vehicles In Q1, view top-rated stocks among Wall Street analysts, Direxion Daily Electric and Autonomous Vehicles Bull 2X Shares (EVAV), First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN), iShares Self-Driving EV and Tech ETF (IDRV), Global X Lithium & Battery Tech ETF (LIT), Fidelity Electric Vehicles and Future Transportation ETF (FDRV), 640 FIFTH AVENUE 12TH FLOOR, NEW YORK NY, 10019. Since then, changing economic and stock market conditions, coupled with company-specific challenges, have pushed LCID down to sub-$10 per share prices. When it comes to the current state of the company and the growth trajectory its on, frankly, thats all we have to look forward to. As a technology-based company, were seen as having a platform that can be applied to a wide range of vehicles as well as sustainable technologies. Nasdaq Though the Model S ultimately beat out the newcomer, it was only by an incredibly slim margin. The content we provide here should not be considered as any financial advice or any other form of advice meant for investment or Trading. Lucid Motors will be selling hundreds of thousands of cars a year, at super-high price points, with extremely favorable margins. The company produces this post-luxury vehicle at the company's Greenfield electric vehicle manufacturing facility in Casa Grande, Arizona. And this is only the beginning. Lucid only started to ship its first batch of 520 customized "Dream" Air sedans last October. Indeed, weve been bullish on Tesla for so long that weve scored our readers 2,000%-plus gains on the stock. As I pointed out recently, Rivian Automotive (NASDAQ:RIVN), another would-be Tesla killer, has a healthy preorder backlog. It has since been updated to include the most relevant information available.]. Moreover, NIO (NIO) and XPeng (XPEV) stock are trading at 4.2x and 4.4x, respectively. The CEO also acknowledges this is not his forte. There are currently 2 sell ratings, 3 hold ratings and 3 buy ratings for the stock. Invest better with The Motley Fool. Today's Change. How many employees does Lucid Group have? As a result of the merger, Churchill Capital and Lucid Motors were renamed Lucid Group and shares of CCIV switched over to the LCID ticker. Can Lucid actually grow into its frothy valuation over the next 10 years? 8 analysts have issued 12-month price targets for Lucid Group's shares. Lucid plans to increase its annualized production run rate from 20K by 2022 to 500K by 2030. Its becoming clear that Lucid Motors is providing stiff competition for Tesla, especially in the premium, luxury channel. The vehicle . Forecast target price for 05-05-2023: $ 8.21. However, Tesla also enjoyed a first-mover's advantage in the EV market, and it expanded its mainstream appeal by gradually rolling out lower-priced models. It seems like their software strategy has not been moving in sync with its advances in powertrain and battery. View analysts price targets for LCID or view top-rated stocks among Wall Street analysts. For Lucid stock to reach $100 from the current price, it would need to rise 270 percent. Price as of April 28, 2023, 4:00 p.m. I do much more than just articles at Ultimate Growth Investing: Members get access to model portfolios, regular updates, a chat room, and more. We believe it's a tall order, a very ambitious target. Founded in 2007, the company has established a reputation for producing high-end electric vehicles. It also held the #11 position in QS World University Rankings 2022., I'm also a Commissioned Officer (Reservist) with the Singapore Armed Forces. You should do your own research. Peers EV/FY23 Revenue Comps. (844) 978-6257. Rawlinson emphasized (edited): We're using our extraordinary efficiency to achieve range to create a technological tool to force to define the brand as a range king. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Tesla CEO Elon Musk emphasized: "If it takes a couple of days for a model to train versus a couple of hours, it's a big deal.". The company can be reached via phone at 510-648-3553 or via email at investor@lucidmotors.com. Charles Coldicott from Redburn went a step ahead and said that Lucids Air Sedan in addition to being the longest-range EV is ahead of Teslas product in some other areas. She emphasized that both companies don't seem to have a viable game plan to challenge Tesla's lead at the moment. Capital Com is an execution-only service provider. Now we're planning as a default to do that in-house, and we're building the team. It may result in additional dilutive capital raises, like the $1.5 billion offering completed in late December. Join us and start seeing experiencing the quality of our service today. According to analysts' consensus price target of $10.58, Lucid Group has a forecasted upside of 44.6% from its current price of $7.32. We help you to pick lower-risk entry points, ensuring you are able to capitalize on them with a higher probability of success and profit on their next wave up. A photo of the Lucid Motors Air EV from 2018. The company employs 7,200 workers across the globe. Itay Michaeli, from Citi Group, set a $57 price target on LCID stock . The Motley Fool owns and recommends Tesla. I was previously an Executive Director with a global financial services corporation. Therefore Lucid expects to match Tesla . See; the worlds largest company Apple(AAPL) is about to enter the EV game. Were talking a $20-plus billion revenue company by 2026, with 20%-plus gross margins. Those stores will be busier than Teslas. Also Read: Rivian Stock Price Prediction 2025, 2030, 2022, 2023, 2040, 2050, Also Read: NIO Stock Forecast 2025, 2022, 2023, 2030, 2040, 2050, Also Read: Tesla Stock Prediction 2022, 2023, 2025, 2030, 2040, Disclaimer: Stocks forecast / Price Prediction / Target or Crypto forecast / Price Prediction / Target given on our website is only for information purposes and to educate the stock market Participants / Traders / Investors. It's a distinction that CEO Peter Rawlinson has envisioned from the start to build the "best car in the world." Q. Duolingo Speaking Volumes: Forms Bullish Chart Ahead of Earnings, JPMorgan Chase, BlackRock rise; Boeing, Lucid Group fall, NIO Could Bring A Pleasant Beat This Coming Quarter (LCID), Get MarketBeat All Access Free for 30 Days, Stock Traders Buy Large Volume of Call Options on Lucid Group (NASDAQ:LCID). Its Stock Is Diving. Your membership also includes: Daily Tactical Market Analysis to sharpen your market awareness and avoid the emotional rollercoaster, Access to all our top stocks and earnings ideas, Access to all our charts with specific entry points. ARK Invest CEO/CIO Cathie Wood recently weighed in on Lucid's and Rivian's (RIVN) autonomous gameplan. The material provided on this website is for information purposes only and should not be understood as an investment advice. It was so impressive that even Volkswagen AG (OTCPK:VWAGY) Chairman Herbert Diess also applauded Tesla for its software capability. For now, the Model S holds a slight edge overall, but if Lucid can work past its teething issues, it may well endTeslas reign.. We cannot simply consider that Lucid operates in the same market as Tesla did more than ten years ago. In fact, theres a tiny, $3 technology stock that I think may be the single most compelling 12-month investment opportunity in the market today. Capital Com SV Investments Limited, company Registration Number: 354252, registered address: 28 Octovriou 237, Lophitis Business Center II, 6th floor, 3035, Limassol, Cyprus. With an initial capacity to manufacture approximately 10,000 EVs annually, the facility has the functionality to produce over 300,000 cars with planned expansions. financial results for the first quarter of 2022, Lucid Group stock fundamental analysis: Q1 financial results, Lucid stock forecast and analyst insights. We highlighted in a recent article that the chip supply crisis put Tesla's capability in software on display recently. The total average for the year might be $426.48. Software will most likely shape the future of the automobile industry, especially when it comes to autonomous driving software. Given the company's long-term earnings growth potential, Lucid Motors is worth about $100 billion today. Lucid might generate multibagger gains if it hits those targets, but it still hasnt proven that it can successfully scale its business. The long-term earning potential for investors is +7.44% per year. (from Lucid's FQ3'21 earnings call), Tesla automotive gross margins (ex-credits). I led company-wide award-winning wealth management teams that were consistently ranked among the best in the company., I graduated with an Economics Degree from National University of Singapore [NUS]. Moreover, it's a technology that Rawlinson has acknowledged isn't his forte. Another EV Start-up Has Cash, Production Problems. For one, itll be standing alone as the de facto brand of luxury EVs above Tesla, Audi and Porsche (POAHY). With most of its valuation still built . I/we have a beneficial long position in the shares of TSLA, NIO either through stock ownership, options, or other derivatives. Who are Lucid Group's major shareholders? Its first car would be Lucid Air, which will go for production later this year. However, Rawlinson's ultimate objective is to use its technology to foster mass adoption worldwide. Not quite. In 2018, the Public Investment Fund of Saudi Arabia invested $1 billion in Lucid Motors. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. In conclusion, we tried our best to answer about what will lucid stock be worth in 5 years. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. He added (edited): We use that technological advance as a commercial enabler. The 5 Year Outlook for Lucid Motors In 2022, they plan on expanding to the European markets, and Canada. Moreover, Business Insider reported recently that Lucid's lack of experience in software could be troubling as it intends to compete with Tesla and the Chinese EV makers. Since Lucid only started deliveries of the Air at the end of October, it shouldn't come as a surprise that the company isn't profitable yet. For years, EV stocks followed TSLA wherever it went. If you have an ad-blocker enabled you may be blocked from proceeding. And when Tesla released its Model S Plaid, there were no mic drop moments. This means it may be maxing out its underlying tech. This will give us the motivation to produce more quality content for you. Lucids core EV technology is designed in-house and manufactured at its Arizona facility. The Final Word on Lucid. Since the start of this year, Lucid stock has plummeted by nearly 55% from $40.93 to its last close price of $18.96 on 8 June 2022. Insiders that own company stock include Michael Bell and Public Investment Fund. Therefore it should also demonstrate a highly competitive software lead against Tesla and the Chinese EV players. Popular online brokerages with access to the U.S. stock market include WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab. Itay Michaeli, from Citi Group, set a $57 price target on LCID stock, saying: Bank of America analyst John Murphy tagged Lucid Motors as a combination of Tesla and Ferrari and had stock expectations of $30 on LCID. Lucid is entering the saturated EV market at a much higher price point than Tesla, so its total addressable market could actually be much smaller. This estimate is a 105.85% increase from the current price of 18.89. The company added: We are an early-stage company with a limited operating history, operating in a rapidly evolving and highly regulated market. Similar to Tesla's approach, Lucid expects to transition from only selling luxury vehicles to also offering more-affordable models, which it expects to introduce in 2025. Transform your investment strategy with our popular Investing Groups service., Ultimate Growth Investing specializes in a price action-based approach to uncovering the opportunities in growth and technology stocks, backed by actionable fundamental analysis., We believe price action is a leading indicator., Price action analysis is a powerful and versatile toolkit for the informed investor because it can be used to analyze any publicly traded security. The Value Of Lucid Can Reach $127 USD In The Next 5 Years. On 5 May, Lucid Group released its financial results for the first quarter of 2022 ended 31 March. On 18 May, Lucid Group hosted a signing event for the construction of its first-ever international production factory in Saudi Arabia. We will wait for more clarity from management over the points that we discussed above. Lucid also plans to continue its international expansion, which kicked off in Canada in late 2021. Notably, Lucid's target is to reach 500K annually by the end of 2030, as Rawlinson emphasized (edited): Right now, we're laser-focused on growing the scale towards 20K units next year, then 50K. That expansion will be very difficult for an unprofitable company to pull off. It looks like Lucid will be the winner of the luxury EV race, at least for the next few years. Save my name, email, and website in this browser for the next time I comment. The Motley Fool has a disclosure policy. Cost basis and return based on previous market day close. Data source: S&P Capital IQ. Tesla (TSLA) has been the industry leader for years. The market has evolved, and Lucid has the advantage of being a latecomer as well. The star figured prominently in the Dominion lawsuit. View the best growth stocks for 2023 here. However, one really understated aspect is their capability and edge in software. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. The firm has attracted investments from Tsing Capital, Mitsui, Venrock, and JAFCO. In contrast, Lucids reservation figures have been trending lower. Lucid Motors has joined McLaren Applied Technologies and Sony to develop Formula E specifications. 5 Hypergrowth Stocks With 10X Potential in 2023, Lucids reservation figures have been trending lower, Even if Block Beats on Earnings, Stay Away From SQ Stock, Louis Navellier and the InvestorPlace Research Staff, Rare Stock Indicators Show the Market Is About to Skyrocket, 3 Stocks to Buy Before They Become the Next Trillion-Dollar Companies, Ideanomics (IDEX) Stock Surges 90% Ahead of Possible Delisting, 7 High-Yield Dividend Stocks to Buy and Hold Forever, The 7 Best Dividend Stocks to Buy for May 2023, Stock Market Crash Alert: Mark Your Calendars for May 3. While that battle has waned, a new one seems to be rising: one involving electric vehicles (EVs). Lucid expects to have cars on the road by 2022. In alignment with growing demand for its products, Lucid Group announced an agreement with the Saudi Arabian government for 100,000 of its vehicles, delivered over a 10-year period. Within just 2-3 weeks they had a new software which allows them to use different chips. Theyve been working on a super-secret Apple Car project since 2015. To make the world smarter, happier, and richer. Retail traders have been interested in investing in electric vehicle (EV) stocks, for a long time, and several have gone public with a blank-check vehicle known as a SPAC. He emphasized (edited): I have a great deal of respect for many Chinese automakers in driving software capability. That would mean Teslas max point is below Lucids. Netflix. Expect LCID to continue languishing in the stock market junkyard, Source: Around the World Photos / Shutterstock.com.
