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Lucid Stock: What’s Ahead in 2022?
Stock Analysis & Ideas

Lucid Stock: What’s Ahead in 2022?

A series of positive developments, including the initiation of vehicle deliveries and an acceleration in new reservations, have led to a rally in Lucid Group (NASDAQ:LCID) stock. 

During the company’s Q3 conference call, Lucid’s CEO Peter Rawlinson stated that the company has begun delivering vehicles. Also, he highlighted that new reservations accelerated beyond the 17,000 mark.

Despite the positives, negative factors, such as overall selling in the market, ongoing supply-chain issues, and expected challenges on the production front, led to a pullback in Lucid stock. It is down about 12% in the last 10 trading days. 

Now What?

Last month, Guggenheim analyst Ali Faghri initiated coverage on Lucid stock with a Hold recommendation. While Faghri remains upbeat about Lucid’s EV technology and products, he expects Lucid to face difficulty in scaling production in FY22. 

Along with Faghri, Charles Coldicott of Redburn Partners remained sidelined on Lucid stock. Coldicott sees direct competition with Tesla (NASDAQ:TSLA) as a challenge. Further, he pointed out that Lucid could find it tough to enter the Chinese market, which is the largest EV market in the world.

Nevertheless, Lucid remains upbeat and expects to scale to 20,000 units in 2022. Despite the supply-chain challenges, Lucid is investing in its capabilities and expanding manufacturing space, which would increase its production capacity. 

Further, Lucid is expanding its retail footprints and plans to enter Europe and the Middle East in 2022. 

Wall Street’s Take

Supply-chain challenges and competitive headwinds keep most Wall Street analysts on the sidelines. Lucid stock has received 2 Buy, 3 Hold, and 1 Sell recommendations for a Hold consensus rating.

On the other hand, the Lucid stock price prediction on TipRanks shows decent upside potential. The average Lucid Group price target of $41.20 indicates 16.2% upside potential to current levels.

It’s worth noting that blogger and investor sentiments are positive about Lucid stock. Meanwhile, corporate insiders bought LCID stock worth $101.1K over the past three months

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