Lucid Group (LCID) is an EV manufacturer based in California. I am bullish on the stock.
Some EV makers might focus on economy and affordability. Lucid definitely doesn’t fall into that category. The company unabashedly targets automotive consumers who are willing to pay extra for beautiful cars with all the bells and whistles.
Lucid stock was taken to the woodshed in late 2021 and early 2022. Does this mean that there’s no market for luxury EVs? Not necessarily, as Nasdaq-listed stocks were broadly bruised during the time, and Lucid stock was likely just collateral damage.
Perhaps, then, investors are witnessing an EV-market turnaround story in its early stages. Lucid is undoubtedly determined to be part of that story, with vehicles that stand out from the rest and a shopping experience like none other.
A Remarkable Achievement
While Lucid doesn’t attempt to compete with other EV makers based on price, the company instead chooses to design the highest-quality vehicles possible.
The company’s flagship vehicle, known as the Lucid Air, is proof positive that Lucid is a serious threat to all luxury automakers, electrified or not. As a form of confirmation of its standing in the EV field, the Lucid Air earned a highly coveted award.
Specifically, the Lucid Air has been named the 2022 MotorTrend Car of the Year. That’s a remarkable achievement when we consider that the Air is Lucid’s first vehicle model, and it competed against a field of 24 competitors from major automotive manufacturers.
This honor was certainly well deserved, as the Lucid Air offers upwards of 500 miles of range, which is top-tier among EVs.
MotorTrend Group Head of Editorial Ed Loh was effusive with praise, saying, “With the longest driving range of any electric vehicle on the market, an EPA estimated 520 miles, and over 1,100 horsepower available, the Lucid Air is a technological tour de force.”
The Highest Standard
Yet, Lucid doesn’t only offer high-powered cars. The automaker goes further than that, as Lucid also strives to provide a luxurious buying and ownership experience.
Reportedly, Lucid has 21 Lucid locations currently open in North America, with the newest Lucid service centers established in markets such as Chicago, Seattle, and Houston.
“Our latest series of openings help us further one of our core principles: delivering an ownership experience of the highest standard,” explained Zak Edson, Lucid’s vice president of Sales and Service.
The crown jewel of the Lucid shopping experience is the Lucid Studio, which combines the “physical experience of seeing and touching a Lucid Air” with what the company describes as an “elevated digital experience.”
Indeed, Lucid Studio locations leverage the possibilities of traditional automotive shopping with leading-edge virtual reality.
“Using a 4K VR configurator, Lucid’s Virtual Reality Experience combines the physical and virtual worlds to showcase seamless personalization of everything from interior finishes and materials to exterior color,” according a Lucid press release.
Wall Street’s Take
According to TipRanks’ analyst rating consensus, LCID is a Hold, based on two Buys, three Holds, and one Sell. The average Lucid price target is $41.20, implying 51.9% upside potential.
Takeaway
Wall Street’s analysts aren’t super enthused about Lucid stock, but there is upside potential. Perhaps it’s difficult to be bullish when technology and EV stocks are generally under pressure.
Yet, the outlook should be optimistic as Lucid targets an EV niche that should appeal to high-end buyers. As the Lucid Air gains traction in the ultra-luxury EV market, Lucid stock could deliver surprisingly strong returns in 2022.
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