On May 13, Lucid Motors (NASDAQ: LCID) officially opened its ‘Lucid Studio’ in Munich, Germany. This marks LCID’s first European retail location, situated in Odeonsplatz.
Shares of the company jumped 14.79% in the trading session on the day the announcement came while the market, in general, had a positive session with most electric vehicle (EV) companies seeing a nice price recovery.
The company plans on opening additional retail locations in Germany, Netherlands, Norway, and Switzerland in 2022 with the Air Dream Edition first being offered in two configurations for Europan customers.
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European expansion
LCID vehicles Air Dream Edition R and Edition P were initially launched in North America with only 520 units, and now European customers will also be able to also enjoy these vehicles, as the company decided to offer a limited number in Europe to celebrate the European launch.
Lucid Group reported its Q1 2022 earnings on May 5, indicating that there would be price changes to their products due to rising raw material costs and supply chain issues; therefore, pricing of their models will differ from country to country.
Shares and analysts
Despite the EU news boost the shares received, they’re still trading well below all daily Simple Moving Averages. In 2022, the shares have seen a lot of value destruction reaching new all-time lows in the last few trading sessions. With current inflation and geopolitical worries, it will be a challenge to find the new resistance for the stock, since more volatility might be on the table.
On Wall Street, analysts are still holding the moderate buy rating for the shares, predicting that the average price in the next 12 months could rise by 112.38% to a price of $38.25 compared to the current share price of $18.01.
European customers can rejoice since a new EV upstart has entered the battle, which could possibly provide more variety to customers.
Global challenges have not gone away, so more volatility in share price could be expected despite the company delivering on milestones. Investors already in the stock may take a ‘wait-and-see’ approach to see how things pan out in the weeks following the announcement.
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