There has been a lot of buzz lately among electric vehicle (EV) companies. In April, Toyota Plans for 15 new battery electric vehicles presented. In May, ford debuted the Lightning, an all-electric version of its famous F-150.
Whether it’s an old automaker diversifying its product line or a pure start-up, multiple players are now looking to share in the growing EV market. Despite all the competition, few companies seem to compare with Lucid Motors by merging with a SPAC called. Want to raise $ 4.6 billion in cash Churchill capital IV (NYSE: CCIV). Because of this, Lucid Motors could be a millionaire growth stock worth buying now.
Image source: Lucid Motors.
The game plan
Lucid Motors is expected to begin production of its Lucid Air luxury sedan at its manufacturing facility in Casa Grande, Arizona, in the second half of 2021. The Air is expected to be available in four different trim levels. Lucid plans to launch the fairings in price order, with the most expensive offering (the Dream Edition) coming out first and the cheapest version (the Lucid Air Pure) coming out sometime in 2023. The Dream Edition comes with an EPA rated range of 503 miles, 1,080 horsepower, 0-60 mph in less than 2.5 seconds and a sticker price of $ 169,000 before federal tax credits, while the Air Pure is expected to have a range of over 400 miles, Have 480 horsepower and will cost $ 77,400 before federal tax credits.
In February, Lucid had around 7,500 reservations for its Air line of products. In May 2021, that number rose to over 9,000, which translates into expected sales of over $ 800 million. With reservations for the Dream Edition now closed, investors should turn their attention to production dates and delivery quantities.
Image source: Lucid Motors.
Lucid’s big goal is to have three businesses: Lucid Motors (Cars), Energy Storage Systems (ESS), and Technology. For cars, the plan is to start with Air luxury sedans, add the Gravity (an SUV) project in 2023, and then gradually expand the production and model offerings to lower the sticker price.
ESS includes the sale of battery packs and battery management systems to private customers, commercial customers and large customers.
Lucid sees an opportunity to ship its batteries and software to EV racing teams. In addition, there could be potential for providing technology to the industrial sector with applications such as aircraft, military, heavy machinery, agriculture, and marine.
In 2022, Lucid’s goal is to produce at least 20,000 vehicles, have sales of $ 2.22 billion, and make an easy profit. Sales are then expected to grow at an average annual growth rate of nearly 60% and in 2026 sales of more than $ 22 billion, gross profit of over $ 5.2 billion and production of 250,000 vehicles to reach.
These early predictions should be treated with caution as Lucid has not yet sold a single vehicle. Management recognizes that its brand and reputation depend on the on-time delivery, performance and positive reviews of the Lucid Air Dream Edition.
competitive advantages
Speaking of management, Lucid’s C-Suite is full of talent. Eighteen members of the 20-strong team have experience working for competing automakers and various Fortune 100 technology companies. And eight out of 20 joined earlier. worked Tesla (NASDAQ: TSLA). Lucid CEO Peter Rawlinson was the senior vehicle engineer on the Tesla Model S and is the lead engineer behind the Lucid Air
Of course, none of Lucid’s short- or long-term goals matter if its vehicles can’t keep up with the competition. Given the current price, Lucid sees itself mostly in competition with the Mercedes-Benz S-Class and then with Tesla when it brings its equipment to market under $ 100,000. Despite the stiff competition, Lucid is the “clear winner” in terms of EV technology due to its faster charging time and greater range with a smaller, cheaper battery pack.
The main advantage of Lucid Air is that it combines long range with performance. The company’s second most expensive equipment, the Lucid Air Grand Touring has a battery efficiency of over 4.5 miles per kilowatt hour (mi / kWh) of stored energy. According to Lucid, this is higher than the Tesla Model S, Jaguar I-Pace, Porsche Taycan and other competitors. “I believe that [battery efficiency] is the most important key figure for the performance and origin of an EV company. If you had to distill it down to a single number, this is it, “Rawlinson said during the company’s February presentation.
Lucid is able to achieve a high efficiency rating mainly because it is developing its own technology and planning to do its own manufacturing. The battery pack, the motor and the gearbox, the inverter, the charging system and the software are all developed in-house and give the Air an integrated drive train that does not rely on components and parts from independent suppliers.
Image source: Lucid Motors.
It’s worth noting that if the Air Dream Edition hits its intended specs, it would be the first electric vehicle to have a range of more than 500 miles and one of only two electric vehicles to produce over 1,000 horsepower (the other being the newly released Tesla Model S Plaid ). High price or not, that would be an incredible technical feat that could help lift the Lucid brand and expand its customer base.
The bottom line
Lucid Motors has spent the past five years developing competitive technology. Today it is a legitimate company that now has the funds to scale it up. The early interest in the Air Dream Edition, the Lucid 2022 delivery target of 20,000 vehicles, and the goal of a slight profit as early as next year are encouraging. Investors should keep in mind that Lucid’s schedule and projections can vary widely, and the company’s stock is sure to be volatile for a long time to come. However, given the long-term potential of electric vehicles and Lucid’s competitive edge, it appears the company has the highest growth potential of any automotive stock in the market today.
This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all think critically about investing and make decisions that will help us get smarter, happier, and richer.
