Lucid Motors Stock 2025 Predictions | Will it Happen?
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Today we are going to talk about Lucid Motors Stock. Lucid Motors is one of the newest names
in manufacturing luxury EV cars. It is competing with well-established brands, including Tesla,
in the EV vehicle industry.
Lucid Motors went public on NASDAQ under the ticker symbol LCID on July 26, after merging
with Churchill Capital IV (CCIV). According to the announcement made by the company, it
will be delivering its first EV vehicle in late 2021.
After the merger, various news regarding LCID Stock is going on, leading to questions like
Is Lucid Motors Stock a good long-term investment? or Will Lucid Motors give
a profitable return after five years? and so on. In this video, we will talk about our
predictions for Lucid Motors Stock and analyze its performance.
Lucid Motors Performance After Merging with SPAC
It is worth noting that Lucids stocks have gained much attention since the beginning
of the year. However, the price of this stock is pretty volatile. Before the merger with
CCIV, Lucids stock hit $60 but lately, it is just near $20.
As soon as the rumours of the merger went public, the stock dived from $10 to $64, which
is a 540% hike. Nevertheless, it fell back to the $20 range a few months later, giving
it a bearish trend.
Later, after new shares were released from the lockup, on August 31, LCID dropped from
$19 to $16 in just one day. As a result of this fall, investors could only take home
a few bucks of profit per share.
Although the current price of LCID is around $20, it is anticipated that it can reach new
heights if the company manages to achieve a few milestones. Also, if this happens, investing
in Lucid Stocks for the long term will be a clever move.
Lucid Motors Sales Target
Lucids EV car, the Lucid Air, is expected to roll out in late 2021. This car will beat
the Tesla Model S and R1T in terms of battery efficiency. Lucid is also planning to launch
its luxury SUV by 2023.
Lucid reveals that it has received 11,000 reservations for Lucid Air till July end.
It aims to deliver 42,000 Lucid Airs by 2025. Besides, it targets to deliver 135,000 SUV
cars in total by 2025. However, the progress is questionable since Lucid Air is still in
the production phase, and the SUV production has not yet begun.
Comparatively, the sales target of Lucid Motors is less than its competitor, Tesla, which
has delivered 206,421 EV motors within the second quarter of this year.
As per the companys forecast, Lucid strives to earn 97 million dollars in revenue in 2021,
assuming that it will sell nearly a thousand motors. The growth is anticipated to lift
in the next four to five years. If it happens as expected, Lucid will make a constant gross
profit of 22 per cent on average.
Lucid Motors Stock Prediction 2025
Unlike the majority of the EV companies that claim to be Tesla Killers without having a
single product in hand, Lucid has a product, which is its Lucid Air EV car. Lucid has also
gained a lot of attention from the public and investors due to its products.
However, the company has not yet delivered a single EV car to its customers. It planned
to roll out the first Lucid Air in 2021, but the production was delayed. Thats why despite
being in September, we havent seen Lucid Air on the road.
Lucid Motors has declared a Production Preview Week, starting September 27. During this time,
selected visitors will get to test drive the first luxury car by Lucid Motors, Lucid Air,
and take a tour of the factory. This declaration proves that Lucid is way more transparent
than other companies, and we will get to know more about the vehicle.
Lucid Motors anticipates getting cars on the road by 2022 and a revenue of more than $2
billion till then. In the coming five years, the company aims to sell 36,000 Lucid Air
and 12,000 SUVs. Lucid has predicted that the SUV will make up over 60% of the total
deliveries by 2026.
The plan is to build its market by providing economical vehicles and eventually expand
the top line in the coming years. It aims to be on the profitable end by 2023. Lucid
intends to gain revenues of $14 billion in 2025. The expected EBITDA in 2025 is also
expected to soar up to $1.7 billion in 2025.
Presently, Lucids market cap is nearly $32.7 billion. So, if Lucid achieves its targets,
it would be 2.3 times the price to sales and 19.2 times the price to EBITDA, which is a
much higher number than that of Tesla.
Will Lucid Challenge Tesla?
It is no secret that Lucid will be challenging Tesla and other brands entering the EV industry.
However, there is still no surety of how this will happen within the coming five years.
As quoted earlier, Lucid plans to roll out its first car in 2022 and get about 20,000
vehicles on the road by the end of the year. This will help the company generate around
$2.2 billion in revenue. We all know Tesla is dominating the EV vehicle industry. When
Tesla traded publicly for the first time in 2010, it delivered 1500 vehicles in the first
year.
What makes a difference between these two companys figures is that Tesla made its
debut 11 years ago. Considering the growth rate in the EV industry, we can expect that
Lucids entry will disbalance Teslas market share.
As the company claims, Lucid is endeavouring to take 0.6% of the Global EV market share
next year. If Lucid successfully achieves its target in the Global EV market share,
the Lucid Air will beat Tesla S.
Are Lucids Prospects Valid?
Considering the predictions of the management, it seems that Lucids journey in the coming
five years will be interesting. However, that doesnt mean that investors should purchase
more Lucid stocks.
Although the claims of the company are promising, we cannot ignore the fact that there will
be more competition in the market over the next few years. Many companies are shifting
to the EV vehicle industry. As a result of this, Lucid might have to cross several hurdles
to reach its targets.
Besides, Lucid has made 30% of its projections on the models that are yet to be announced.
So, it is hard to believe whether the company will meet its prospects in five years.
Lucid Stock Latest News
Lucid merged with the blank-check company CCIV in July, and the shareholders of Lucid
Motors approved the merger. This led to a hike in Lucid stock prices.
On September 9, the Citigroup analyst gave a buy recommendation for Lucid Motors Stock,
stating that it would go up to $28. Soon after Citigroups rating went public, CFRA also
indicated a buy for Lucid with a target price of $25.
On September 1, the lockup period for private investment in public equity investors terminated.
This termination permitted investors to sell shares, which resulted in a fall of about
11%.
Why Invest in Lucid Motors Stock
Throughout the video, we have been talking about Lucids stock and its predictions.
However, it is interesting to know that the team at Lucid is equally dedicated to producing
top-notch EV vehicles.
Lucids CEO, Mr Rawlinson, was the vice president of Vehicle Engineering at Tesla.
Additionally, the vice president of design, Mr Jenkins, and vice president of manufacturing,
Peter Hochholdinger, at Lucid are also well-versed in building cars. That indicates that the
team at Lucid knows how to manufacture and sell EV cars. So, it is going to be a good
competitor for Tesla.
Further, Lucid Air will be rolling out in four different versions, of which the Dream
version will be the high-end model. The car will be a close rival to Teslas high-end
electric cars since it is much more efficient in terms of battery power.
The car will be launched in late 2021. Still, its worth marking that Lucid has not yet
sold a single car, despite having 11,000 reservations. Also, its SUV is yet to go to the production
line. So, it is questionable how long it will take for Lucid to be profitable.
Currently, Lucid stock is one-third more than its current price, which is a good deal. If
you are willing to take a little risk, it is worth it to invest in Lucid.
Contrarily, if you are looking for a short-term investment, you will have to be extremely
careful. You will have to drop out as soon as you seek a sign of witness to stay on the
profitable side.
Thats it, guys. Weve reached the end of the video. Hopefully, youve got your
answer on how far Lucid Motors Stock will go. Please note that this video is not financial
advice. We are only sharing our predictions. Make sure to do your research before investing
in any stock.
Let us know your thoughts on Lucid Stocks in the comment section below. And if you havent
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If you enjoyed this video, then smash that like button and share it with fellow car enthusiasts.
Oh, and in case you missed it, head over to our video on The Key Details Surrounding CCIV
and Lucid Motor Merger to get a better idea about how Lucid might perform, and how its
set to break some barriers! Goodbye!
We will see you in the following video until then, Bye!