Lucid Share Forecast November 2021 – Time to Buy LCID?
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Shares of American electric vehicle manufacturer Lucid (NASDAQ:LCID) are in the green today, after closing $55.52 as of November 16th (19:59 EST). The shares rose significantly in October, with the rally continuing this month. The company has commenced the delivery of its first cars in October which offer a longer range than any other EV in the market.
Lucid – Technical Analysis
Lucid’s financial statement indicates a market cap of $89.866 billion with total assets worth $2.072 billion. As reported on November 15th, the company lost $524.4 million in Q3 which came to about $0.43 per share. This coincided with the start of production of its first vehicle. Revenue amounted to just $232,000 as the company did not begin deliveries of its vehicle until the quarter’s end.
Moving averages for Lucid such as Exponential Moving Average (10)(43.92), Simple Moving Average (10)(43.62), Exponential Moving Average (20)(38.77), Simple Moving Average (20)(36.67) and Exponential Moving Average (30)(35.48) are indicating a buy action. Oscillators such as Relative Strength Index (14)(79.84), Stochastic %K (14, 3, 3)(88.63), Commodity Channel Index (20)(179.61) and Average Directional Index (14)(45.09) are neutral.
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Recent Developments
Lucid debuted via an IPO on July 26th after which it was snapped up by Churchill Capital IV — a special-purpose acquisition company (SPAC) that valued the company at $24 billion. Lucid has refined its battery technology over the years, in which it has over ten years of experience. The technology is also used in Lucid Air’s battery packs. The company’s impressive product performance is the product of the experience of the management team. Peter Rawlinson, Lucid Group’s CEO and CTO has over 30 years of experience in the auto industry. The management team is also rich in experience in the technology, EV and auto sectors.
Lucid’s plans for Lucid Air contain several price points. This ranges from $169,000 for its Dream Edition to $77,400 for Lucid Air Pure. It features an autonomous driving system using 32 sensors, including long-distance Lidar which even tesla has yet to offer. The company will start production of a new model called Gravity by the end of 2023. The company also plans to deliver 20,000 vehicles in 2022 which is expected to generate about $2.2 billion in revenue. Management anticipates a run-rate production of more than 500,000 units by 2030. It plans to expand its Casa Grande factory which will help it to build about 90,000 vehicles in 2023. The company has also expanded 13 U.S. locations in the quarter, with future plans to enter China, Europe and the Middle East.
Should You Buy LCID Shares?
As Lucid has just commenced car deliveries, it is too early for any investor to say how much the company can grow in the long run. According to Rawlinson while Lucid still has an expectation of producing 20000 vehicles in 2022, investors should not that “this target is not without risk given ongoing challenges facing the automotive industry” caused by supply chain and logistics disruptions worldwide. The shares surged by more than 20% Tuesday after it released its earnings results.
There’s no doubt that Lucid is a promising, long-term EV stock for any investor. At the moment, the shares are above a proper buy point. It has expanded past the buy area. The shares are viewed as speculative as the company is yet to register earnings. Based on this, now is not the time to pick up LCID shares. There are far better options if you want to go for an EV company share right now.
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