In recent weeks, the stock price of electric vehicle (EV) manufacturer Lucid Motors (NASDAQ: LCID) has displayed bullish sentiments as it aims to recover from losses experienced throughout most of 2023.
With the bullish signs evident, attention has shifted to whether the stock can maintain these gains as the company implements several strategies to increase its vehicle deliveries in a highly competitive environment, looking ahead to 2024.
To gain insights into the potential performance of the stock in 2024, Finbold utilized quantitative analysis and harnessed the predictive capabilities of AI algorithms on the CoinCodex platform with a specific focus on forecasting the LCID price on the first day of the new year.
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According to the platform, LCID is projected to trade at $5.49 on January 1, 2024. This value represents gains of over 16% from the stock’s price at the time of writing. Indeed, the projected valuation is still in the shadow of the 2023 high.
LCID’s ability to sustain momentum
Despite the positive gains and bullish projection, Lucid has faced challenges, with the company reeling from the impact of supply chain shortages. Lucid has seen its turnover fall due to fewer vehicles delivered recently, leading the electric car manufacturer to cut its production target for the current year.
Notably, Lucid aimed to compete with Tesla (NASDAQ: TSLA), but Elon Musk’s company still commands a significant portion of the EV market. The company faced aggressive price cuts as Tesla attracted consumers from its luxury segment amidst rising interest rates and soaring inflation. Concurrently, Lucid has grappled with negative press, including a report by The Wall Street Journal highlighting a substantial $227,000 loss on each car sold.
Overall, LCID stock is looking to conclude the year on a strong note as the company implements measures to boost deliveries. In this regard, Lucid has introduced a special discount offer named the ‘Conquest Credit Bonus,’ specifically targeting Tesla owners.
Lucid is offering Tesla owners a $2,000 discount on all 2023 models of the Air sedan, aiming to stimulate sales before year-end. This move comes as Lucid slashed prices across its lineup.
Meanwhile, Lucid announced several noteworthy modifications to their 2024 lineup by streamlining the available trims, expanding customization options, and, once again, reducing prices.
LCID price analysis
By the close of markets on December 11, Lucid stock was valued at $4.73, gaining over 5% over 24 hours.
LCID is still trading below the crucial 100-day moving average at the current price. Trading above this level will see the stock breach the $5 resistance level.
As Lucid Motors stock encounters resistance at $5, the ability to surpass this level largely hinges on how the firm navigates the competitive EV markets and implements strategies to recover from recent setbacks.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
