The surge in global interest around clean energy and climate change has pushed the Electric Vehicle (EV) industry to the forefront of technological innovation.
As a result, numerous companies are competing in this rapidly evolving sector to capture a significant chunk of the market, among these contestants, two companies, Tesla Inc. (NASDAQ: TSLA) and Lucid Group, Inc. (NASDAQ: LCID), stand out as worthy of mention.
According to its most recent report, Lucid delivered 1,457 Lucid Air vehicles in 2023 Q3, the flagship EV of the company. This is 36% less than the estimated projection of 2,275 for the period.
Notably, Finbold retrieved data from Statista showing the production of 430,488 electric vehicles by Tesla in Q3 2023. Also noteworthy is that Tesla’s production has slightly dropped from the previous three quarters.
Lucid, Tesla, and the EV Industry
More than just a trend, electric vehicles represent an integral part of the worldwide initiative to reduce greenhouse gas emissions, with countries such as the United Kingdom and Germany setting ambitious goals for a majority electric vehicle future.
Tesla (TSLA) market analysis
Tesla, led by the billionaire Elon Musk, is a household name in the EV industry and is credited with pushing the EV sector into the mainstream consciousness.
With a diverse range of models, impressive performance specs, and a wide network of charging stations, Tesla continues to be the benchmark for other electric vehicle industry players.
The company’s offerings have gained substantial consumer confidence, translating to an impressive market cap of over $805.9 billion as of October 17, 2023. TSLA is trading at $254.6 per share by press time, losing 11% in the last three months, from $286.45 per share.
From a technical analysis point of view, Tesla stocks are facing a death cross in the daily chart.
Lucid (LCID) market analysis
On the other hand, Lucid, a Californian premium electric vehicle manufacturer, has been making waves as a serious competitor for Tesla.
Although relatively new in the sector, with the production of its first car, the Lucid Air starting in 2021, the company aims to distinguish itself through its high-quality luxury EV offerings. Its debut vehicle, the Lucid Air, has turned heads, boasting a 517-mile range on a single charge, which tops Tesla’s farthest-ranging model.
However, with a much smaller product lineup and an infant stage of market existence, Lucid faces the significant challenge of building a customer base in an industry dominated by established heavyweights like Tesla.
This smaller production capacity is also reflected in its market capitalization of $12.1 billion at the time of publication, changing hands by $5.05 per share, which makes Lucid 66 times smaller than Tesla from a market perspective.
Nevertheless, Lucid stocks had a superior price performance than TSLA in the last quarter. LCID has lost 5% of its value in the period, moving from $5.34 per share to current prices — losing just half of what Tesla has lost in the same three months.
The trader and analyst Jake Wujastyk pointed to an increasingly tight trading range for LCID, which could boost a “large move” for Lucid stocks.
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