• Lucid shares up almost 10 percent on Monday
• Analyst recommends buying the e-car maker’s paper because of its superior batteries
• Report on daily production of 40 to 50 electric cars
Electric car maker Lucid’s stock hasn’t had such a good run so far this year. But now, at the start of the week, an expert from the stock brokerage RF Lafferty caused a significant improvement in sentiment with his analysis. A – so far unconfirmed – report that Tesla’s competitor has significantly increased the production of its vehicles electrified investors.
Analyst Praises Lucid’s Battery Technology – Better Than Tesla?
In an analysis on Monday, according to Barron’s, analyst Jamie Perez from RF Lafferty praised Lucid’s battery technology, which is also used in the Formula E electric racing series. “The proprietary battery technology is the key differentiator for Lucid as it offers both range and performance,” said Perez. The Lucid Air Dream Edition has around 1,100 hp and can travel around 520 miles on just one charge – that’s the equivalent of almost 840 kilometers. According to the news website, the Lucid electric vehicle thus achieves 4.4 miles per kilowatt hour, while Tesla only offers around 4 miles per kilowatt hour with the Model Y Longe Range.
In addition, according to “Seeking Alpha”, the analyst study by Perez also emphasizes the large number of pre-orders – despite the high price. Because the Lucid Air Dream Edition can cost up to 170,000 US dollars. Still, Lucid has received more than 37,000 reservations for the Air model, totaling $3.5 billion, according to the analyst. In addition to the regular pre-orders, there is also an agreement with the Kingdom of Saudi Arabia for the purchase of up to 100,000 electric cars within the next ten years.
Even if Lucid is planning cheaper models in the future, the expert from RF Lafferty locates the electric car manufacturer in the luxury segment. The analyst is quoted as saying on “Seeking Alpha” that he is confident that Lucid will be able to address high-end customers with sedans, SUVs, crossovers, pickups and coupes by the end of the decade.
With so much praise, it is not surprising that Jamie Perez included the Lucid share in his rating with a buy recommendation. The expert set the price target in his study at 19 US dollars, but he did not name a time horizon for this. Lucid shares then jumped 9.75 percent to $16.55 in NASDAQ trading on Monday. The share was last listed at USD 16.49, which means that there is still upside potential of around 15 percent up to the price target (as of the closing price on September 16, 2022).
Increasing production rates continue to drive Lucid stock
But it was not only the analyst study that caused the price fireworks in the Lucid share on Monday. A report by the tech website Wccf tech also fueled the paper, according to The Motley Fool. Citing an “internal source” and a forum for Lucid owners, she wrote that between 40 and 50 vehicles a day are currently rolling off the assembly line at Lucid. Production is soon to be increased to 50 to 60 vehicles a day. However, this information has not yet been confirmed by Lucid.
According to The Motley Fool, if the report turns out to be correct, it would be a huge improvement compared to the last official figures, which indicated that Lucid was only able to produce five to 15 electric cars per day. Lucid would thus come much closer to its own forecast of producing between 6,000 and 7,000 electric cars in 2022 than previously appeared.
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