Lucid Group (LCID) is an EV manufacturer based in California. I am bullish on the stock.
There are plenty of EV makers on Wall Street to choose from. Yet, Lucid isn’t like all the others.
The company’s flagship vehicle, known as the Lucid Air, is reportedly the “longest range, fastest charging luxury electric car in the world.”
At least, that’s what the company says. Still, the Air’s range of up to 520 miles per charge puts it in the upper echelon of EVs. (See Analysts’ Top Stocks on TipRanks)
At the same time, LCID stock has been volatile and challenging to investors seeking steady, consistent growth.
A Quick Look at LCID Stock
As you may recall, LCID stock spiked quickly in early 2021, from $10 to $58.
In hindsight, it’s evident that the market wasn’t ready to keep the stock at that price level.
Painfully, LCID stock crashed after topping out in February. As a result, the share price hit $17 in May, and then again in September.
However, the stock appears to be staging an impressive comeback now. In fact, the Lucid share price just recently revisited the crucial $50 level.
That’s encouraging, and it could be enough to justify a long position for momentum-focused traders.
Just be careful, though, as we all know what happened the last time LCID stock hit $58.
Accolades aren’t everything, but it certainly doesn’t hurt to receive one.
Lucid actually received a very meaningful accolade from none other than MotorTrend recently. It’s an affirmation that Lucid is an innovator in the EV space.
Specifically, the Lucid Air was honored as the 2022 MotorTrend Car of the Year.
Of course, this wouldn’t mean much if Lucid was failing as a business venture.
Fortunately, that’s not the case at all. If anything, Lucid is moving quickly in the fast lane.
For instance, in Q3 2021, Lucid’s customer reservations increased to 13,000. Obviously, there’s demand for the Lucid Air.
That figure reflects an order book of approximately $1.3 billion, believe it or not.
Plus, Lucid’s customer reservations have since increased beyond 17,000, after the Q3 result was posted.
No $100-Billion Market Cap?
This is all highly encouraging, but not everyone is enthusiastic about LCID stock’s future prospects.
Currently, Lucid’s market capitalization is $83.1 billion. One Wall Street expert, however, isn’t convinced that this figure is destined to reach $100 billion anytime soon.
Morgan Stanley analyst Adam Jonas isn’t leaning full-on bullish despite Lucid’s recent accolade and customer reservations.
Don’t misunderstand — Jonas acknowledges that Lucid has already generated an “impressive” number of reservations.
Besides, the company already made its first batch of deliveries, and Lucid’s order book is exhibiting strong growth.
It’s possible that Jonas may be concerned about the recent price spike in LCID stock, though.
Looking ahead to Fiscal Year 2022, Jonas forecasts that Lucid will deliver 15,000 vehicles. Lucid is targeting 20,000.
So, Jonas and Lucid might not see eye-to-eye on that issue. Nonetheless, they’re both expecting a pretty good year for this audacious EV startup.
Wall Street’s Take
According to TipRanks’ analyst rating consensus, LCID is a Moderate Buy, based on two Buys and one Sell. The average Lucid price target is $44.33, implying 12.2% downside potential.
There’s simply no denying that Lucid has gained the attention of the EV market, including a meaningful accolade.
More importantly, the customer reservation count for the high-powered Lucid Air is growing quickly.
So, don’t worry if not everybody is full-on bullish.
As the EV maker continues to impress and innovate, LCID stock could move much higher long term, even after its recent spike to a critical level.
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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