Electric vehicles (EVs) have been all the rage for quite some time, and with gas prices on the rise, their popularity shows no signs of waning. And while Tesla has dominated the luxury electric car market, a fresh challenger has emerged to capture investors’ attention: Lucid Motors.
So if you too want to be part of this growth, read on as we analyze the most important facts about the EV manufacturer, explain how to buy Lucid Motors stock, and provide an overview of the most reliable brokers to use.
Intermediate Traders and Investors
What is Lucid Motors?
The company was founded in 2007 under the name Atieva and initially focused on developing electric vehicle batteries and powertrains for other car manufacturers. However, in 2016, the company rebranded, changing its name to Lucid Motors, and officially announced its plan to develop all-electric, high-performance luxury vehicles.
Lucid’s first electric car, the Lucid Air, is a luxury sedan that boasts a range of over 500 miles on a single charge, making it a formidable competitor in the electric vehicle market. In fact, as demonstrated by the chart below, the Air Dream R AWD model is estimated to have the highest range among all-electric vehicles with 520 miles (followed by Air G Touring AWD with 516 miles), surpassing Tesla (NASDAQ: TSLA) by more than 100 miles. Lucid Air was also the 2022 MotorTrend car of the year.
What is EV range?
Furthermore, with investments expected to total $700 million by 2025 in its US assembly plant, Lucid has made significant strides toward demonstrating its commitment to developing and producing high-quality electric vehicles. Notably, it now sits as the seventh automaker to boost its investments in this area, reflecting a growing trend toward sustainable transportation solutions.
Lucid Motors IPO took place on July 26, 2021, when the company went public through a merger with a special purpose acquisition company (SPAC) called Churchill Capital Corp IV (CCIV), raising $4.5 billion and valuing the company at $24 billion. The Lucid IPO price was around $25 per share, and the company was the stock market star when it went public, quickly doubling in price. However, Lucid stock has since lost more than half of these gains, hovering around $8 per share as of April 2023.
Lucid’s stock symbol is LCID, and it trades on the NASDAQ exchange. You can acquire Lucid stock via multiple brokers, which we will overview later in this guide.
What is a SPAC?
How to buy Lucid stock? Step-by-step process
As a publicly-traded company, Lucid stock can be purchased through a regular retail broker. The following section will provide a detailed summary of the steps involved in how and where to buy Lucid shares.
Step 1: Choose a broker
To buy Lucid stock online, you’ll need a brokerage account. Your ideal platform should align with your investment style (long-term buy-and-hold strategy or active day trading) and needs (e.g., whether you want to trade more advanced financial products like options). Here are some key features to consider when evaluating brokers:
- Fees: Brokerage fees are a type of fee collected by brokers to execute your transactions or provide specialized services. Fortunately, today, the vast majority of online brokers offer commission-free stock and exchange-traded funds (ETF) trading;
- Security: Choose a trustworthy broker by ensuring it is fully licensed by state regulatory authorities as well as FINRA and registered with the Securities and Exchange Commission (SEC);
- Trading tools: Active traders may prefer brokerage accounts with all the bells and whistles. Some brokers offer fully customizable platforms with comprehensive analysis tools or access to additional data for an extra cost. If such additions are unnecessary for your purposes, avoid paying extra for them. It’s typically a good idea to look for a user-friendly platform with a competitive fee structure if you are new to stock trading. A dedicated section with investing tips and tricks is a bonus;
- Access to market data: Look for a platform that offers solid market research and reporting tools to help you trade confidently with updated data;
- Fractional stock trading: Fractional shares enable investors to buy stocks or ETFs by the dollar amount, which is particularly valuable for investors with limited capital and the desire to build a diversified portfolio or investors looking to set up a dollar-cost averaging (DCA) strategy.
Where can I buy Lucid stock?
Thanks to the abundance of online brokers, access to the stock market has never been more convenient and affordable. However, choosing the right broker tailored to your specific needs, including investing goals, educational resources, and trading style, is crucial for a seamless trading experience.
To securely invest in Lucid and buy LCID stock, consider these brokers:
- Commission-free stock trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- User-friendly platform.
Intermediate Traders and Investors
- Commission-free stock trading;
- Global stock-trading on 90+ market centers;
- Fractional shares available;
- Extra income on fully paid shares;
- Lowest financing rates for margin accounts in the industry;
- No account minimum.
Low cost investing
Step 2: Fund your account
Once you have decided on a broker, it’s time to fund your account. Remember, it can sometimes take up to three days for the money to reach your account.
Step 3: Research the company
The best place to start researching a company is to go through its public filings with the SEC. Fortunately, as a publicly traded company, Lucid’s quarterly (form 10-Q) and annual (form 10-K) earning reports, SEC filings, shareholder presentations, as well as recent press releases can be accessed directly from their investor relations section.
Within those reports, you can find details on Lucid’s financial performance and strategies for the future, as well as information about challenges facing the company or industry as a whole, such as charging infrastructure, battery, and semiconductor shortages, or regulatory hurdles.
Step 4: Decide how much you want to invest
So you’ve settled on Lucid stock, but now comes the big question: how much will you invest?
The amount you put in will depend on a few factors, such as the current stock price and how many shares you want to buy. If the stock price is too steep for your liking, don’t worry, you can always check out fractional shares. With fractional shares, you can buy a slice of a share for a dollar amount that suits your budget.
However, investors should remember that investing is inherently uncertain, and the outcomes are never guaranteed. That’s why it’s crucial to only invest what you can afford to lose and carefully consider how much risk you’re willing to take on. Keep those things in mind, and you’ll set yourself up for success!
Step 5: Place your order and buy Lucid stock
Once you settle on the number of shares or the dollar amount you’d like to invest in Lucid, you can place your order. If you’re working with an advisor, tell them you’d like to buy Lucid stock, and they’ll take care of it. Alternatively, if you have a brokerage account, simply log in and enter the ticker LCID in the search bar.
There are a few different execution options to choose from, including:
- Market order: A market order is an order to buy the stock at the current market price that is generally executed immediately (subject to availability);
- Limit order: A limit order is processed once the stock reaches your specified price. For example, imagine you want to buy LCID stock at $10 or lower. You would then set the limit price at $10, and the order will only execute when the stock reaches the set price or lower;
- Options contract: Options speculation allows for leveraged positions in a security at a fraction of the cost of the underlying asset. A call option allows the trader to profit if the price of the stock increases, and a put option enables them to profit if the stock price declines. Remember, derivative instruments can only be traded on a margin account, which typically has higher minimum balance requirements than standard brokerage accounts.
Invest in LCID with index funds
Step 6: Monitor your investment
While a hands-off approach may work for a diversified portfolio of ETFs, for single stocks like Lucid, investors should continue monitoring the company’s performance by keeping a close watch on press releases, company health indicators such as debt and revenue, industry performance, consumer trends as well as overall market conditions. Then, depending on your financial goals, use that knowledge to reassess whether it’s best to hold onto the stock or sell it.
Lucid stock price
Lucid IPO took place on July 26, 2021, priced at $15 a share, raising $4.5 billion and valuing the company at $24 billion.
Lucid stock price reached an all-time high of $55.21 per share on November 19, 2021, and as of April 2023, the stock price was around $8.03 per share, 47% lower than its IPO price. Ultimately, as mentioned earlier, as a relatively new company with a relatively recent IPO, Lucid stock is subject to considerable fluctuations in price.
Is Lucid a good stock to buy?
Besides looking at the Lucid stock fundamentals, you can use technical analysis to evaluate the company and identify trading opportunities in price trends and patterns seen on charts.
This gauge displays a real-time technical analysis overview for your specified timeframe. It can be a valuable technical analysis tool for many traders by simplifying trading decisions by demonstrating the real-time recommendations of popular technical indicators such as moving averages and oscillators.
Disclaimer: TradingView does not recommend trading financial instruments based exclusively on the advice of the Technical Rating indicator. These recommendations cannot predict future movements and are meant as assistance for spotting potentially favorable buy/sell conditions if this is consistent with their strategy.
Common mistakes to avoid when investing in stocks
Mistakes are expected when investing in stocks but can be avoided if you recognize them. For an in-depth guide on investing mistakes, we have compiled a list of 17 common mistakes and tips for preventing them. But, for now, let’s list some of the most typical ones:
- Not performing your due diligence on the stock;
- Having unclear financial goals;
- Attempting to time the market;
- Failing to diversify;
- Letting your emotions rule the investment decision-making process.
How to sell Lucid stock?
You can sell Lucid stock if you see the company performing differently than expected or after reaching your desired financial goal.
If you’re working with an advisor, they can create a sale order for you. However, if you have your own broker account, simply log on, navigate to the stock’s detail page, input the number of shares or dollar amount you want to offload, and tap sell.
Pros and cons of buying Lucid stock
Before you buy Lucid stock, take into account both the pros and cons of Lucid’s business:
- A growing EV market: As the world moves towards more sustainable options, the auto industry will also experience a significant shift towards electric. For example, according to Fortune Business Insights, the global EV market is expected to grow from $287.4 billion in 2021 to $1.3 trillion by 2028 at a compound annual growth rate (CAGR) of 24.3%;
- Tesla losing steam: Tesla’s market cap lost $436.32 billion in the last quarter of 2022, surpassing the total capitalization of the top ten competitors in the EV market and allowing smaller players like Lucid to step in and potentially steal the spotlight;
- Growing the business: Handsome investments in its US assembly plant demonstrates the company’s commitment to its mission and growth potential;
- Undervalued: The stock price may be undervalued at this point, providing a potential opportunity for investors to buy in at a lower price.
- Macroeconomic headwinds: Investors have been driven away from growth stocks towards value stocks due to the impact of factors such as high inflation, aggressive interest rate hikes, and the ongoing war in Ukraine;
- Not profitable: The company is not yet profitable, which may be a concern for investors seeking steady returns;
- No dividends: Lucid Motors does not pay dividends to its stockholders;
- Fierce competition: The EV market is highly competitive, with many established players and new entrants;
- The stock has plummeted since IPO: The shares of Lucid have lost almost half (as of April 2023) of their value from their IPO price amid severe cost pressures and repeated production delays;
- Expensive product: The starting price for the 2023 Lucid Air is $87,400, out of reach for most consumers.
All in all, while the long-term potential of Lucid Motors is obvious, the stock comes with substantial risk today. In fact, not only is the competition in the EV market at an all-time high, but the company is also unprofitable.
So, as always, remember to conduct your own independent research and have robust risk management strategies in place before diving into the market. Ultimately, the goal of investing is to make money over the long term, so rather than getting caught up in the stock market’s short-term ups and downs, investors should focus on a company’s prospects a decade down the line.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about Lucid
How to buy Lucid Motors stock?
Lucid Motors is a publicly traded company, and its stock is available on the NASDAQ exchange under the stock symbol LCID, which means you can buy shares of Lucid Motors through your brokerage account.
Where to buy Lucid Motors stock?
You can buy Lucid Motors stock from various online brokers such as eToro and Interactive Brokers (IBKR).
Is Lucid a good stock to buy?
Whether Lucid is a good stock to buy should be based on your risk tolerance, portfolio size, financial goals, and market experience. So always conduct your due diligence before trading. Also, note that past performance doesn’t guarantee future returns.
What will Lucid stock be worth in 5 years?
The value of Lucid stock in 5 years will depend on a myriad of factors, including market conditions, company performance, technological progress, and the competitive landscape in the electric vehicle sector.
Why is Lucid stock down?
Lucid Motors has been struggling to scale production, leading to fewer orders and quickly depleting cash reserves, all amid intensifying competition in the electric vehicle market.
How much is Lucid stock?
The current (as of April 11, 2023) LCID stock price is hovering around $8, a 47% decrease from the stock’s IPO price of $15.