Lucid Group (LCID) is an electric vehicle (EV) manufacturer based in California. I am bullish on the stock. (See Analysts’ Top Stocks on TipRanks)
There are plenty of EV makers out there for investors to wager on nowadays. Each one has its own distinguishing characteristics.
From the outset, it’s been crystal clear that Lucid’s EVs won’t be cheap. However, they’ll be powerful and will have a sleek appearance.
If you believe in the future of luxury EVs, then LCID stock could be right up your alley.
Moreover, a recent tweet from the company should get Lucid’s stakeholders excited as some amazing vehicles are reportedly being delivered.
A Quick Look at LCID Stock
On the afternoon of October 25, LCID stock was up 10% and was among the most buzz-worthy stocks on the market.
The share price was pushing up against $27. This was giving the buyers hope of breaking through the $30 resistance level, which had been in place since March.
Really, $30 should only be the beginning of the bull run as LCID stock has gone as high as $64.86 during the past 12 months.
So, don’t be afraid to take a position in the $30s if you’re anticipating bigger and better things for Lucid. Long-term, a revisiting of the prior peak isn’t unrealistic.
Just don’t get caught up in the hype if LCID stock goes vertical again like it did in February. Chasing after parabolic price moves can be harmful to one’s financial health, after all.
A Mysterious Tweet
On October 24, Lucid published a tweet with no words – just a picture.
When a company does this, it can create a sense of mystery and anticipation. People start talking – and that’s exactly what Lucid wants, no doubt.
Elon Musk is known for doing this, with dramatic effects. So, what’s the scoop with Lucid’s tweet?
It contains what appears to be a photograph of a large delivery truck shipping out half a dozen sedans, which seem to be covered in protective wrapping.
That doesn’t sound like a big deal, right? Why should this tweet garner over 6,000 likes and more than 1,200 retweets?
What’s intriguing about the tweet is that the half-dozen cars are, we can probably assume, Lucid Air Dream Edition vehicles, produced in Lucid’s factory in Casa Grande, Arizona, and on their way to customers’ driveways.
Ramping Up the Range
All of the foregoing is a game-changer because it tends to confirm Lucid’s prior announcement that Air sedan deliveries would commence in late October.
In keeping with Lucid’s reputation for producing high-ticket vehicles, the company’s first Air Dream Edition sedans are reported to cost $169,000 per car.
However, as the old saying goes, you get what you pay for. For that hefty price, buyers will get a car with the longest EPA-rated range among EV-market competitors – up to 520 miles.
If your bank account can’t handle a $169,000 debit, then there’s also Lucid’s Air Pure base version. This model still has an impressive range of 406 miles, and it would only set you back $77,400 (excluding a $7,500 federal tax credit).
The point here is that Lucid poses a direct threat to other EV manufacturers with its vehicles’ ranges.
After all, luxury means that you wouldn’t have to recharge your vehicle every couple of hundred miles, right?
Wall Street’s Take
According to TipRanks’ consensus rating, LCID is a Moderate Buy, based on two Buys and one Sell assigned in the past three months. The average Lucid price target is $23.33, implying 15.3% downside potential.
The Takeaway
Due to the considerable range of Lucid’s vehicles, other EV manufacturers should be on notice.
Prospective LCID stock investors should be on notice, too – but in a good way, as there’s an opportunity here.
Even if the share price jumps into the mid or upper $30s, you still might be able to double your investment in Lucid eventually as the company delivers some of the most buzz-worthy vehicles available today.
Disclosure: At the time of publication, David Moadel did not have a position in any of the securities mentioned in this article.
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