Is Lucid Group Inc. the Sleeper Hit of the EV Market?

Lucid Group (NSD:LCID), the electric vehicle manufacturer, is projecting a 100% YoY increase in vehicle production, with a conservative forecast of 14,000 vehicles to be produced in 2023. The company plans to triple its production capacity over the next two years and is expected to increase its installed production capacity to 90,000 by the end of next year. Lucid Motors also has expansion projects underway in Arizona and Saudi Arabia, with the latter having a peak annual production capacity of 155,000 electric vehicles. While Lucid Motors has faced supply-chain issues and delays in scaling production, its first-year sales of $608.2 million are commendable, with revenues expected to increase by 121% this year and 138% in 2024. Despite falling out of favor in the EV market, long-term focused EV investors can purchase Lucid Motors’ discounted stock at around $7.40. However, investors should consider the risks of falling EV prices, supply failures, inflation, and macroeconomic risks before purchasing Lucid Motors’ stock.

Investment Risks for Lucid Motors

Lucid Motors’ valuation may be impacted by recent concerns in the EV industry about falling prices. This has been compounded by the pressure put on peers by Tesla (NSD:TSLA), the largest EV company in the world by market value, which has lowered its electric vehicle prices.

TSLA Ratings by Stock Target Advisor

Moreover, Lucid Motors may not be able to meet its 2023 production target due to possible supply chain issues, lower demand for new electric vehicles caused by inflation, or a full-fledged crisis in the U.S. banking system following the failure of Silicon Valley Bank. All of these risks, both micro and macro, should be taken into account by investors before purchasing Lucid Motors stock.

Lucid Group Stock Analysis

Lucid Group Inc. is expected to reach an average analyst target price of USD 13.18 in the next 12 months, based on the stock forecasts of 12 analysts. The average analyst ratings for Lucid Group Inc. is “Buy”. However, Stock Target Advisor’s own stock analysis of Lucid Group Inc. is “Bearish”, which is based on 2 positive signals and 6 negative signals. As of the last closing, Lucid Group Inc.’s stock price was USD 8.19, representing a change of +8.62% over the past week, -17.27% over the past month, and -67.74% over the last year.

LCID Ratings by Stock Target Advisor

Company Overview

Headquartered in Newark, California, Lucid Group, Inc. is a leading technology and automotive company that specializes in electric vehicle technologies. The company is involved in the design, engineering, and manufacturing of electric vehicles, EV powertrains, and battery systems. Established in 2007, Lucid Group, Inc. is at the forefront of the electric vehicle industry.

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