- Lucid Air was termed the 2022 Motor Trend Car of the Year.
- Four thousand three hundred sixty-nine cars were delivered in 2022.
- Rumors are that Saudi Arabia’s Public Investment Fund (PIF) might buy out Lucid.
Lucid Group Inc. is a technology and automotive company that develops electric vehicle (EV) technologies. Also, engineers design and build EV powertrains and battery systems. It was founded in 2007 with headquarters in Newark, California. Their first car was a luxury sedan named Lucid Air, named 2022 Motor Trend Car of the Year, and 4,369 cars were delivered in 2022. More than 37,000 reservations had already piled up.
Rumors of a Buyout
Rumors have been circulating in the market that Saudi Arabia’s Public Investment Fund (PIF), which already owns 62% of Lucid, is preparing to buy the remaining shares, taking the company private. In 2018 PIF invested nearly $1.3 million in Lucid and another $915 million in the fourth quarter of 2022. The Saudi fund already has a US stock portfolio of $37 billion as of September 30, 2022, and Lucid represents 40% of that.
If the buyout comes to fruition, the expected process would be a heavy investment for fixing operational issues curtailing production growth. The luxury EV brand has been struggling since 2022, managing to produce only 7,180 units. With an average of 38 units per day, while Tesla’s Q4 production rate was 4,779 units per day.
LCID – Price Analysis
At the time of writing, it was trading at $11.53 with a slight dip of 0.35%, with a previous close at $11.57 and open at $11.46. The fifty-two-week range is from $6.09 to $30.12, meaning the current rate is on the lower side. With a market cap of $21.08 billion, the volume is 20.88 million shares and an average volume of 41.51 million. The next earning date is February 22, 2023. With a revenue of $376.86 million, the revenue per share is $0.23. The quarterly revenue growth (yoy) is 84,148.70%.
The expected price target is $19.29, with a 67.3% upside. Short interest is bearish, with 34.32% float sold short. At the same time, there is a 2.44 rating by analysts for Hold.
LCID – Chart Analysis
A big candle generally hints at a speculative moment, confirmed by a follow-through. In this case, no confirming pattern is visible, indicating that the price is supposed to consolidate for some time. A bigger candle and equally more than usual volume are generally followed by a retracement or correction process.
If and when the price touches or crosses the $13.28 mark, there’s a possibility that the price might move south for a bit. Unless this retracement process is not done, any confirmation or prediction is debatable.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/02/09/lucid-group-inc-lcid-buyout-rumors-fuelling-the-rally/