Lucid: The Upmarket Bet Is Increasingly Crowded


  • LCID’s bet on the upmarket segment may not work in its favor, especially with many legacy automakers similarly releasing premium EV line-ups.
  • Its lack of profitability may pose headwinds to its valuations as well, since the management may continue relying on stock sales or debt leveraging in the intermediate term.
  • With LCID about to launch its SUV Gravity by 2023 and start production by 2024, it is unsurprising that Mr. Market remains bearish due to the potential increase in capital expenditure.
  • Alternatively, the PIF may actually be planning to acquire LCID, as it intended to do with TSLA in 2018.
  • It would allow LCID to access the immense assets worth $607.42B, possibly bankrolling the company’s expansion over the next decade.

Gambling chips stacked around roulette wheel on gaming table

Michael Blann/DigitalVision via Getty Images

The Premium Thesis Is Compelling

Lucid Group, Inc (NASDAQ:LCID) has been heavily battered, after it only delivered 4.36K vehicles in 2022, compared to the original guidance of up to 14K in the

LCID 1Y Stock Price

S&P Capital IQ

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.

Additional disclosure: The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.

Leave a Reply

Your email address will not be published. Required fields are marked *