Lucid Group: Not Healthy, But Has A Few Ways To Cheat Death

Summary:

  • Lucid has seen a harsh pullback in its stock price, and has announced unexpected production cuts compared to initial expectations.
  • As a startup, it’s an inherently risky investment; financial fragility, production and demand concerns, and competitive pressures are a constant threat.
  • I believe that the company has a decent chance at survival, since it can access more capital to sustain itself if necessary.
  • However, it still has to prove its mettle before I would consider recommending it as a long-term investment.
Lucid Air Pre Production Electric Car

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Thesis

The popularity of electric vehicles (EVs) over the past several years is undeniable. From finance media coverage to EV consumer sales over the past decade, EVs have been all the rage. EV demand in the United States (US) is no exception; battery electric


Disclosure: I/we have a beneficial long position in the shares of TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.


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