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Can the clouds above Lucid be lifted? Opinions of industry insiders on LCID

Dino
Kurbegovic
3 months ago
3 mins read

Shares of Lucid Group (NASDAQ: LCID) have pulled back recently as the electric vehicle (EV) company is facing difficulties. Inflationary pressure, supply chain disruption, and weaker-than-expected Q4 results all caused the stock to go down. 

It seems as if the company’s woes have no end in sight as the CEO, Peter Rawlinson stated in an interview back in March that the company is contemplating raising the prices of their future models due to soaring nickel prices and huge inflationary pressures.  

The company is targeting the luxury EV market with numerous prototypes and innovative technology. However, scarce semiconductors are not helping their cause, with windshield glass, exterior trim parts, and carpeting pilling on supply chain woes. This all contributed to a lowered outlook the company gave in its recent earnings report.

LCID stock prediction and charting

LCID has been trading sideways for the past two months staying slightly below all daily Simple Moving Averages and down 46% for the year. Support for the stock is firmly planted around the $20 mark with trading volumes significantly lower in the month of April.  

LCID 20-50-200 SMA lines chart. Source. Finviz.com data. See more stocks here.

Analysts have moved from the sidelines and gave the stock a moderate buy rating with an average next 12-months price target of $40.50. This would represent a move upwards of 83.67% from the current trading price of $22.05.

Source: TipRanks

The bottom line

Lucid is a promising long-term EV stock that made its first electric vehicle deliveries in October of 2021. The stock is trading at levels similar to those seen throughout the business’s transition from a SPAC to a full-fledged publicly traded company.

Autonomous driving companies in the market which have no earnings trade at valuations close to $30 billion while Lucid has a valuation of $40 billion. With superior technology over such competition and production set to scale significantly in the coming years, the stock could go back to more bullish prices. 

With a strong order book and further coming demand from corporate fleets, there should be less uncertainty for the company’s long-term demand. Investors need to be cognizant of the short-term issues the company is facing and keep an eye out for any updates before deciding to invest. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

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Dino Kurbegovic
Author

Dino is an investor and technology enthusiast with years of experience in managing complex projects. At Finbold he covers stories on stocks, investing, micro and macroeconomic trends. Also, he’s also building a micro solar power plants in his hometown.

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