The Lucid Group anticipates opening additional studios and service centres across its targeted European countries and the UK in the coming years. Trading is a highly risky business, please consult with your financial advisor before making any decision. Autonomous driving is very significant to ARK Invest's 2025 Tesla thesis. It continues to prove itself and why we should all be fans of LCID stock. On Tuesday, the two most popular stocks purchased by Fidelity customers were Lucid and Rivian, the latter of which recently went public. The long-term earning potential for investors is +7.44% per year. Apple will launch its own EV likely within the next two years. That expansion will be very difficult for an unprofitable company to pull off. Earnings for Lucid Group are expected to grow in the coming year, from ($1.41) to ($1.00) per share. Not quite. From their current market capitalizations today, Visa ( V 1.62%), ASML ( ASML 1. . We've got a Casa Grande capacity planned out to 365,000 units. Itay Michaeli, from Citi Group, set a $57 price target on LCID stock . Unfortunately, a look at the details suggests LCID is more likely to languish in the stock market junkyard. Making use of vertically integrated production processes, the company manufactures its own electric motors, battery packs and transmission systems. That would mean Teslas max point is below Lucids. Lucid stock price . According to analysts' consensus price target of $10.58, Lucid Group has a forecasted upside of 44.6% from its current price of $7.32. Risk warning: onducting operations with non-deliverable over-the-counter instruments are a risky activity and can bring not only profit but also losses. It's almost unheard of in the legacy OEMs world. If Tesla achieves full autonomy, it could create significant competitive advantages for the company against Lucid. Lucid believes it can ship half a million vehicles annually by 2030. The $169,000 car comes with by far the longest EPA-rated range among EV competitors, with up to 520 milesbesting the closest Tesla by more than 100 miles. Consequently, Lucid projects generating $1.52 billion in free cash flow in 2026. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities. If you do, you probably recall the Cola Wars that dominated Super Bowl commercials and other major TV events. Shares of Lucid Motors are more than 50% off their 52-week high and not at a proper buy point, so the stock is not a buy right now. Ans. Social Security Cuts May Be Coming. Lucid wants to massively expand globally and could be in line for a great short squeeze soon. Lucid Group's mailing address is 640 FIFTH AVENUE 12TH FLOOR, NEW YORK NY, 10019. It is anticipated to hit the roads in 2024. We will wait for more clarity from management over the points that we discussed above. In seeking to grow vehicle deliveries from less than 1,000 in 2021 to 251,000 five years later, management clearly anticipates considerable success in convincing customers to hop into its driver seats. Analysts LCID stock price target ranged from $12 to $45, averaging at $31. I have no business relationship with any company whose stock is mentioned in this article. We highlighted in a recent article that the chip supply crisis put Tesla's capability in software on display recently. Should I buy or sell Lucid Group stock right now? Fundamentally, we are constructive on the Lucid story and its position in the EV/car of the future theme., The difference between trading assets and CFDs. Lucid Group reported a nationwide presence through 40 body shops and 24 studio and service centres spanning across North America. But that's easier said than done when the world's top automakers are still struggling with chip shortages and supply chain issues. Copyright Market Cap. This suggests a possible upside of 33.3% from the stock's current price. With an SEC investigation on its SPAC merger with the Churchill group and bearish conditions in the broader EV market, Lucid stock has lost over 50% of its stock value since the start of this year. Since then, LCID stock has increased by 7.2% and is now trading at $7.32. The Motley Fool has a disclosure policy. Theyve been working on a super-secret Apple Car project since 2015. Were talking a $20-plus billion revenue company by 2026, with 20%-plus gross margins. The wild moves Lucid stock made earlier this year, when the former SPAC (special purpose acquisition company) went from $10 to more than $60 per share aren't likely to repeat themselves. The company remains hopeful of meeting its production targets of 12,000 to 14,000 vehicles for 2022. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. We design, jointly manufacture, and sell smart and connected premium electric vehicles, driving innovations in next generation technologies in connectivity, autonomous driving and artificial intelligence. Insider reported (edited): A former Lucid employee said that Rawlinson wants to do "in two years in software what Tesla has done in 13. Profitability on an EBITDA basis, on the other hand, isn't expected to occur until 2024. Retail traders have long been drawn to EV stocks, and several have gone public with a blank-check vehicle known as a SPAC - a move that attracts even more retail traders. Analysts Disclosure: I/we have a beneficial long position in the shares of TSLA, NIO either through stock ownership, options, or other derivatives. What will Lucid stock be worth in 2030? 4 in which I argued LCID stock is worth $42.87 per share. Additionally, the Russian invasion of Ukraine has further caused a dip in its stock performance owing to an uncertain macro environment. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. A high valuation at $14.3 billion is not worth the risk of failing to . Investors remained optimistic about Lucid for three simple reasons. To make the world smarter, happier, and richer. Long-term forecasts are based on making fundamental and technical studies of the stocks performance. Please. Therefore, this subjects Lucid's gross margins modeling into some disarray. In contrast, Lucids reservation figures have been trending lower. In its Lucid Motors stock predictions for 2025 to 2026, it anticipated the price to close at $49.390 and $57.352 by the end of each year, respectively. Why? It appears highly unlikely this EV maker will come even close to hitting past lofty projections such as six-figure vehicle sales volume by 2025. Lucid has also announced increased prices for most models beginning 1 June 2022. Lucid might generate multibagger gains if it hits those targets, but it still hasnt proven that it can successfully scale its business. Instead . Tesla cancelled its competing model and is seemingly bowing out of the luxury car race. financial results for the first quarter of 2022, Lucid Group stock fundamental analysis: Q1 financial results, Lucid stock forecast and analyst insights. And by the end of 2020, Tesla was worth $650 billion. Retail traders have been interested in investing in electric vehicle (EV) stocks, for a long time, and several have gone public with a blank-check vehicle known as a SPAC. In February 2022, Lucid announced plans to construct a new manufacturing plant in Saudi Arabia to produce 150,000 vehicles annually. Lucid Group trades on the NASDAQ under the ticker symbol "LCID.". Where Will Lucid Motors Stock Be In 5 Years? Indeed, weve been bullish on Tesla for so long that weve scored our readers 2,000%-plus gains on the stock. But, it has proven that its in-house powertrain and battery technology are among the best globally. The stock price is great, House said in an interview with CNBC. Both models tied in terms of pricing and value, interior and tech. Even though Lucids market value is still a long way from surpassing Teslas $1 trillion this year. On Nov 15, 2021, Lucid Group (NASDAQ: LCID) reported Q3 2021 revenue of $232.00 thousand up 30.54% year over year. For Lucid stock to reach $100 from the current price, it would need to rise 270 percent. As this figure came in ahead of its most recent guidance (between 6,000 and 7,000 vehicles), this may suggest that the supply chain bottlenecks that forced Lucid to cut back production targets several times have eased. Its first car would be Lucid Air, which will go for production later this year. With a $711 billion market capitalization, Tesla is priced to dominate the EV market for the foreseeable future. Lucid IPO took place on July 26, 2021, priced at $15 a share, raising $4.5 billion and valuing the company at $24 billion. $329.93. I was the Battalion Second-in-command of an Armored Regiment. Earnings per share (EPS) came in at -$0.05 better than analysts expectations of -$0.29, based on data by Seeking Alpha. Lucid plans to increase its annualized production run rate from 20K by 2022 to 500K by 2030. Score: 4.5/5 ( 1 votes ) The LCID ("LCID" ) future stock price will be 119.160 USD in 5 years. That implies a fair price for CCIV stock of over $60. All rights reserved. This is a big win for Lucid. CFO Sherry House articulated (edited): So we're expecting to have competitive gross margins by the time we reach mid-decade. And late last year, the company reportedly increased investments into the project so as to accelerate its development timeline. Based on current forecasts, Tesla might even double that capacity to 2M by 2023. Those stores will be busier than Teslas. The Motley Fool has a disclosure policy. Therefore Lucid expects to match Tesla . Today's Change. According to Forbes, the billionaire had amassed a fortune worth an estimated $5.8 billion. The Motley Fool owns and recommends Tesla. The consensus among Wall Street analysts is that investors should "hold" LCID shares. See:https://seekingalpha.com/who-to-follow, JR Research was featured as one of Seeking Alpha's leading contributors in 2022. Hailing from Silicon Valley, the global centre for technology and innovation, electric vehicle (EV) manufacturer Lucid Group (LCID) was founded in 2007. Always do your own research. This suggests a possible upside of 44.6% from the stock's current price. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. It expects the company to consistently generate a gross profit, averaging about 22% from 2023 through 2026. Their LCID share price forecasts range from $5.00 to $13.00. And when comparing Lucids Air Dream Edition to Teslas Model S Plaid, they proved the two can go toe-to-toe. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. The company posted a record FQ3 in deliveries, while their legacy OEM peers pointed to supply chain bottlenecks. Within just 2-3 weeks they had a new software which allows them to use different chips. But with a market cap of nearly $75 billion, Lucid's stock is already priced for perfection at 34 times that sales estimate. (from Electrek article). Top institutional investors include Simplex Trading LLC (0.00%), Sumitomo Mitsui Trust Holdings Inc. (0.07%), IMC Chicago LLC (0.00%), SG Americas Securities LLC (0.04%), State of New Jersey Common Pension Fund D (0.02%) and abrdn plc (0.02%). Past performance is no guarantee of future results. The size of the potential loss is limited to the funds held by us for and on your behalf, in relation to your trading account. Therefore, we rate LCID stock at Neutral for now. Based on the belief that it'll sell about 1,000 vehicles this year, Lucid expects to book $97 million on the top line. Lucid only started to ship its first batch of 520 customized "Dream" Air sedans last October. But as you know, I'm very open here in Silicon Valley to potential partnerships in terms of the software. Edmunds car experts recently put the two EV makers to the test. And thats great news for other companies but not for Tesla. How much do banks charge to manage a trust? But we're planning on 500K units by the end of the decade. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. Nov 29. And this is only the beginning. CEO Peter Rawlinson said in a phone interview Monday night that there is still a long way to go for electric car start-ups market value to surpass that of traditional manufacturers and eventually be valued more like Tesla. Elon Musk mentioned recently that he considers his Chinese EV peers as Tesla's strongest competitors. Identify stocks that meet your criteria using seven unique stock screeners. Lucid is the new "range king," and is getting ready for volume production. View the latest news, buy/sell ratings, SEC filings and insider transactions for your stocks. It increased at a CAGR of 57.2% over the last five years to 804.3K in FQ3'21. But with a market cap of nearly $75 billion, Lucid's stock is already priced for . Better EV Stock: Lucid Group vs. Faraday Future, Despite Its Falling 92%, Cathie Wood Is Buying More of This Growth Stock. Join us as we undertake Lucid stock analysis and get analyst insights on LCID stock price predictions. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Buying $100 In MRNA: If an investor had bought $100 of MRNA stock 5 years ago, it would be worth $702.80 today based on a price of $130.72 for MRNA at the time of writing. However, Rawlinson's ultimate objective is to use its technology to foster mass adoption worldwide. It expects its annual shipments to nearly double to 500,000 by 2030. Nasdaq After all, even if it fails to become the next Tesla, further expansion over the next five years could send it to the moon again, right? Who are Lucid Group's major shareholders? You're reading a free article with opinions that may differ from The . By January 2027, 5 years from now, Wallet Investor's projected stock price for LCID was in the range of $57.511 to $58.461. (from Barron's interview). What is Lucid Group's stock price forecast for 2023? Lucid Group (NASDAQ:LCID) is moving higher day by day as its production of electric vehicles (EVs) out of its Casa Grande, AZ plant ramps up. With projected Air deliveries rising to 36,000 and Project Gravity deliveries of 12,000, Lucid expects to sell about 48,000 vehicles in 2023. The market has evolved, and Lucid has the advantage of being a latecomer as well. In fact, theres a tiny, $3 technology stock that I think may be the single most compelling 12-month investment opportunity in the market today. The star figured prominently in the Dominion lawsuit. Netflix. Is the 149% Dividend for ZIM Integrated Shipping in Jeopardy? Relative newcomer Lucid is giving titan Tesla a run for its money. Lucid Motors has joined McLaren Applied Technologies and Sony to develop Formula E specifications. Given Lucid's 2030 target of 500K units, it may be unreasonable to assume similar levels of gross margins. Can Lucid actually grow into its frothy valuation over the next 10 years? Lucid at current prices sports a $16 billion market cap, against trailing 12 month losses of around $1.9 billion, and a tangible book value of $3.2 billion. Lucid (LCID) to Report Q1 Earnings: What's in the Offing? Lucid Motors also partners with Amazon to build compatibility with Amazon's Alexa voice assistant, allowing drivers to use the voice assistant for navigation, phone calls, media streaming and intelligent home control while driving. Given the amount of uncertainty over Lucid's plans, as explained above, we can't justify its current valuation. I currently hold the rank of Major. As of June, Lucid Group is accepting reservations for its EVs from customers across several European nations, including Austria, Denmark, Belgium and the Netherlands. Despite a market cap of nearly $70 billion, its earnings per share (EPS) is -306.76. The ascent of Tesla and the leading Chinese EV makers has a lot to do with their brands and the growing EV adoption observed in China (#1 EV market) and Europe (#2 EV market). If You Do This, You Won't Have to Worry About Them, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. The company earns $-1,304,460,000.00 in net income (profit) each year or ($1.06) on an earnings per share basis. Moreover, Business Insider reported recently that Lucid's lack of experience in software could be troubling as it intends to compete with Tesla and the Chinese EV makers. While Tesla was in third place. Rawlinson highlighted that the company is on track to produce 20K units by 2022 and 50K by 2023, indicating a 150% YoY increase in its run rate. This may be the most exciting investment opportunity in the market today. Lucid believes it can generate approximately $2.2 billion in revenue this year by shipping 20,000 vehicles. Current Price. But, Tesla has an annualized run rate of 1M. Lucid Motors stock is a promising long-term EV stock that started deliveries of its first electric vehicle in late Oct. 2021. Therefore Lucid expects to match Tesla's stupendous capacity ramp over the last five years, but for eight immaculate years. The 5 Year Outlook for Lucid Motors In 2022, they plan on expanding to the European markets, and Canada. We believe that Lucid is still very early in its EV market opportunity, even though it seems like a latecomer. Lucid Motors is renowned for its flagship electric sedan, the Lucid Air. Join us and start seeing experiencing the quality of our service today. And the best part? View institutional ownership trends. And industry developments have only strengthened this thesis. Lucid Motors stands out for its groundbreaking technological innovation, vertical integration and clean-sheet approach to engineering and design. Unlock the key insights to growth investing with JR Research - led by founder and lead writer JR. Our dedicated team is focused on providing you with the clarity you need to make confident investment decisions. Lucid hopes to undercut Tesla with its Air Pure base version, capable of driving 406 miles and priced at just $77,400 excluding a $7,500 federal tax credit. Lucid Motors also estimates that it will deliver over 20,000 vehicles by the end of 2022. The company reported a highly impressive gross margin of 28.8% in FQ3. Earlier this month, the EV maker reported full-year production numbers for 2022 (7,180 vehicles). For years, EV stocks followed TSLA wherever it went. It was all according to plan. Is SoFi Stock a Buy Now? A high percentage of insider ownership can be a sign of company health. I was previously an Executive Director with a global financial services corporation. Tesla stock is trading at just 11.9x. As of 8 June, data compiled by TipRanks showed that of three analysts covering the stock, two rated it a buy while one suggested sell. Lucid Motors will be selling hundreds of thousands of cars a year, at super-high price points, with extremely favorable margins. We also have plants in other parts of the world, in the Middle East and in China. The company reported ($0.40) EPS for the quarter, missing the consensus estimate of ($0.39) by $0.01. We help you to pick lower-risk entry points, ensuring you are able to capitalize on them with a higher probability of success and profit on their next wave up. The company reported $494.6m operating costs , up from $218.7m in Q1 2021. Making the world smarter, happier, and richer. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. The company also announced a 200M plan to upgrade Gigafactory Shanghai to expand its capacity. Also Read: Rivian Stock Price Prediction 2025, 2030, 2022, 2023, 2040, 2050, Also Read: NIO Stock Forecast 2025, 2022, 2023, 2030, 2040, 2050, Also Read: Tesla Stock Prediction 2022, 2023, 2025, 2030, 2040, Disclaimer: Stocks forecast / Price Prediction / Target or Crypto forecast / Price Prediction / Target given on our website is only for information purposes and to educate the stock market Participants / Traders / Investors. The content we provide here should not be considered as any financial advice or any other form of advice meant for investment or Trading. I am not receiving compensation for it (other than from Seeking Alpha). Today, few are holding out on Lucid Group (NASDAQ:LCID) as a possible Tesla (NASDAQ:TSLA) in the making. My modeling suggests this tiny stock could soar 40X over the next few years. But, we will probably only have a better idea over the next five years. But after it reins in its initial spending, Lucid believes it will turn profitable on an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis in 2024, and that its free cash flow (FCF) will turn positive in 2025. The company can be reached via phone at 510-648-3553 or via email at investor@lucidmotors.com. Lucid Motors is in line for a huge 2022. And as a tech company, it's our technology, which we are confident will put us in this preeminent position. What is the best way to liquidate stocks? My frank observation is that Chinese automobile companies are the most competitive in the world, especially because some are very good at software. Lucid Group has stated that it believes in concentrating efforts on increasing the miles/kWh over reducing battery costs. As a result of the merger, Churchill Capital and Lucid Motors were renamed Lucid Group and shares of CCIV switched over to the LCID ticker. This move attracts even more retail traders. The Air is powered by two electric motors and can reach a software-limited top speed of 349 miles per hour. Additionally, the fact that management has supplied the projected financial figures is critical to note. And if those gains are as large as we expect, LCID stock will power much higher. This estimate is a 105.85% increase from the current price of 18.89. Forecast target price for 05-05-2023: $ 8.21. To some, the stocks drop to rock-bottom prices may suggest an opportunity to enter a long-term position. Seeking Alpha features JR Research as one of its Top Analysts to Follow for Technology, Software, and the Internet. Optimistic target level: 8.36. While that battle has waned, a new one seems to be rising: one involving electric vehicles (EVs). We believe it would significantly affect where the stock will be over the next five years as EV competition heats up worldwide. Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools: MarketRank is calculated as an average of available category scores, with extra weight given to analysis and valuation. 2023 InvestorPlace Media, LLC. The company shouldn't leave it to investors to do the modeling solely by themselves. Neither is interested, at least for now in pursuing autonomous. Phase-2 of its Casa Grande facility operations is currently underway. The company is commencing production in the high-performance and luxury line. On Monday, he and CFO Sherry House both indicated that Lucids recent stock surge is a sign that Wall Street is already starting to see the company as more like Tesla than a typical automaker. Tesla highlighted that its annual run rate has recently crossed 1M production this year. Moreover, NIO (NIO) and XPeng (XPEV) stock are trading at 4.2x and 4.4x, respectively. After a 40% Drop, Analysts Remain Bullish on Impinj, Visa Charges Higher After Better-Than-Expected Q2 Report, onsemi Puts A Bottom in Chip Stocks, Heads For New Highs, Checkpoint Software Leads Cyber-Security Stocks. Therefore, investors should expect Lucid to remain unprofitable as its debt levels climb over the next few years. Should You Be Too? . The 31st pick in last year's first round, Michigan safety Daxton Hill, signed a $11.667 million . Let's review its long-term ambitions to find out. On average, they predict the company's stock price to reach $10.58 in the next year. If Lucid can replicate that growth, it could easily grow into its valuations and generate massive multibagger gains for its investors. These were valuations based on their reservations and long-term forecasts, instead of actual revenue or profits.