With buyout rumors around, the luxury EV maker Lucid Group Inc. (LCID) can beat Tesla? Founded in 2007, it was formerly Churchill Capital Group Corp IV and is still based in Newark, California. The company has a reputation for producing high-end electric vehicles. Per November 18, 2022, Lucid operates 29 retail studios in the US, and globally, it manages 32.
Lucid Group Inc. (LCID) – Appreciable Points
Lucid specializes in designing, engineering, and constructing EVs, EV powertrains, and battery systems. They also design, create & build energy storage systems for EVs. They supply vehicle platforms for the plug-in, hybrid and EVs to other manufacturers. With this array of abilities, Lucid attracted investments from Tsing Capital, Mutsui, Venrock, JAFCO and Saudi Arabia’s Public Investment Fund.
Their flagship product Lucid Air was rewarded with Motor Trend’s 2022 Car of the Year. They announced an EV SUV concept called Gravity in 2022, slated for production in 2024. In January 2023, speculations began circulating that the Public Investment Fund might be actively discussing a possible buyout of Lucid Group Inc.
Lucid Might Not be so Lucid
The expensive cost, from $87,000 to $249,000, disqualifies them from $7,500 government tax incentives. To circumvent that company announced it’s own $7,500 “EV Credit” In 2021; the company is struggling to regain the crucial mark of $10; another point is that it is not profitable yet.
Due to their deteriorating capital position and ultra-competitive EV market, Lucid might not be able to meet the 21,000 production mark and might end up making 10,000 to 14,000 vehicles only. Its stock is granted a “D” rating. Hence there is still hope for positivity.
Lucid Group Inc. (LCID) – Price Analysis
When writing, Lucid stock was trading at $8.34 with a slight gain of 0.36%. Previous close and open were at $8.31 and $8.24, respectively. The fifty-two-week change was negative, 65.68%. The market cap is $15.266 billion, and short interest seems healthy, with 27.50% float sold short.
The revenue of Lucid was $257.17 million, with a rise of 876.48%; operating expenses grew by 8.75% to $392.16. Net income was negative $472.65 million, gaining 54.8%, and EPS is also negative $0.43 dropping by $42.67%. Earrings were reported on February 22, 2023, where the estimated revenue was $302.613 million, but the reported revenue was $257.713 million, with a surprise of negative 44.9 million, dropping by 14.84%.
The expected price is targeted at $10.75 with a 24.7% upside.
Lucid Group Inc. (LCID) – Chart Analysis
The rumors of Lucid’s buyout by the Public Investment Fund, Saudi Arabia, hyped the price, denoted by the abnormally long candle. But since it never came to fruition, the sentiment broke, and the price dropped. As the price is below the $10 mark, it would consolidate there and move closer to the demand zone if nothing positive happens in the industry or the company.
If and when the price moves above the $10 mark, it could continue the rally and move toward the supply zone. But for that to happen from the current point, multiple variables like company position, EV market situation, and global economy scenarios regarding EVs must be in the right order.
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/2023/03/09/lucid-lcid-stock-can-the-ev-maker-maintain-lucidity/