Last month, Lucid Motors (NASDAQ: LCID) CEO Peter Rawlinson captured the attention of stock market investors after he said the carmaker plans to unveil two new vehicles in the future, aimed at competing with Tesla’s (NASDAQ: TSLA) flagship Model 3 and Model Y cars.
However, on July 18, a Lucid insider revealed that the Newark, California-based electric vehicle (EV) startup is “not deliberately targeting Tesla.”
These remarks, made by Lucid board member Andrew Liveris, came in response to a question about Tesla’s much-anticipated Cybertruck, which rolled off an assembly line in the company’s Texas Giga factory earlier this week, as per a Yahoo Finance report.
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Additionally, Liveris said he believes the EV market is large enough for both the unprofitable Lucid and the industry leader Tesla, which is set to report its Q2 earnings on July 19.
“I’d like to think that there’s enough total available market for all of us as internal combustion engines fade away. The EV market will continue to be big and explode. You’ve just got to scale and get the cash flow to work.”
– Liveris stated.
LCID stock rebounds after last week’s dip
Shares of Lucid opened nearly 3% higher on July 18 market open, marking a noteworthy rebound after a major share price decline last week triggered by a worse-than-expected production and delivery report.
At the time of writing, the company’s stock stood at $7.24, up 2.98% over the past 24 hours. In total, the stock gained more than 7.5% from its Friday closing price of $6.73.
Still, LCID remains down nearly 10% on a weekly chart, due to a sharp decline following the Q2 delivery update. According to the report, Lucid delivered 1,404 electric vehicles in the three months ended June 30, significantly below Wall Street estimates of 1,873.
The disappointing deliveries caused a reaction among stock market analysts. Notably, strategists at Bank of America reiterated a ‘Neutral’ rating on LCID stock, with a price target of $8. The analysts said Lucid “is continuing to experience tepid demand for the Air sedan even before it has fully ramped production.”
Lucid’s shares rallied last month after the company inked a landmark deal with UK automaker Aston Martin, though most of those gains were wiped out by last week’s slump.
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