Lucid Group Share Price Forecast December 2021 – Time to Buy LCID?
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Shares of American electric vehicle manufacturer Lucid Group (NASDAQ: LCID) are in the green today, after closing at $38.64 as of December 27th (19:59 GMT). Investors are all attracted to Lucid because of its sleek EVs and ambitious plans for the future. The company recently revealed plans to produce half a million vehicles annually by 2030.
Lucid Group – Technical Analysis
Lucid Group’s financial statement indicates that it has a $63.616 billion with total assets worth $6.139 billion. Its net income for 2020 was at $-63.47 million.
Exponential Moving Average (10)(39.48), Simple Moving Average (10)(39.19), Exponential Moving Average (20)(41.15), Simple Moving Average (20)(42.72) and Exponential Moving Average (30)(41.25) are indicating a sell action. Oscillators such as Relative Strength Index (14)(43.87), Stochastic %K (14, 3, 3)(21.26), Commodity Channel Index (20)(−58.39), Average Directional Index (14)(22.22) and Awesome Oscillator(−6.82) are neutral.
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Recent Developments
There wasn’t any major news related to Lucid over the weekend. But Lucid has been projected as a potential big winner among investors. The recent surge in share price as a result of the rising tech-focused Nasdaq Composite index, as well as a jump in Rivian shares, which was trading nearly 10% higher.
After reporting its 3rd quarter financial update in mid-November, Lucid has raised another $2 billion and its shares were added to the Nasdaq 100 index. The $2 billion will go towards building Lucid’s manufacturing plant and executing other plans to grow. Lucid recently opened its latest Lucid studio in San Diego. The company’s vehicle lineup currently consists of four versions of the luxury electric Air sedan. The company has further plans to produce a luxury SUV at the end of 2023 and additional models subsequent to that.
Lucid’s newly opened manufacturing plant in Arizona (AMP-1) is capable of producing 34000 vehicles on an annual basis. It has begun its Phase 2 expansion, after which the capacity will increase to 90,000 vehicles per year. While the company will initially only manufacture Lucid Air sedans, it has plans to launch its Lucid Gravity SUVs in the second half of 2023. Lucid has announced further plans to expand in Canada in the fourth quarter of 2021, followed by Europe, the Middle East, and Africa (EMEA) in 2022. This will be followed by expanding into the Chinese market in 2023.
Should You Buy LCID Shares?
The current EV market for Lucid is very competitive with the likes of Tesla and other dedicated EV makers like NIO. The company will also have to tackle traditional automakers like Ford, BMW, and Volkswagen. Lucid is selling its vehicles at higher prices than Tesla. It is also planning to rely on third-party charging networks instead of building its own network of Supercharger stations like Tesla. While the move will reduce Lucid’s operating expenses, it could also miss the opportunity to promote its brand and lock more drivers into its ecosystem.
Lucid is considered a smaller version of Tesla. However, the shares are traded at about 30 times its goal of generating $2.2 billion in sales in 2022. But there are several challenges ahead for Lucid. These include a Securities and Exchange Commission (SEC) subpoena regarding its reverse merger with a special purpose acquisition company (SPAC) earlier this year, staggering losses and a new $1.75 billion convertible debt offering. Based on this, there seems too much optimism already included in its share price. Based on this, now is not the time to add Lucid shares to your portfolio.
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