Lucid Motors’ IPO debuted on July 26, when Churchill Capital Corp. IV brought the luxury electric vehicle leader to the public in a highly anticipated IPO. Is Lucid Motors’ Share A Bargain After IPO?
Lucid Motors Stock IPO
In February, Churchill Capital IV – a special acquisition company (SPAC) – announced a deal to list Lucid Motors, valuing the company at $24 billion. The company is going public “to accelerate into the next phase of our growth,” said Peter Rawlinson, CEO of Lucid Motors.
A SPAC, also known as a blank check company, is an alternative to a traditional IPO. These blank check companies have no assets other than cash. They trade on exchanges and then merge with private companies, making those companies public.
Shares of Lucid Motors traded on July 26 under the ticker symbol LCID on the Nasdaq.
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Fundamental Analysis of Lucid Motors’ Stocks: The Lucid Air
Lucid Motors is on track to begin delivery of its Lucid Air, a powerful, ultra-efficient luxury EV sedan, in late 2021. Company. The company expects to roll out its Gravity performance luxury SUV in 2023. The Lucid Air has not yet entered production, but has just completed the pre-production phase.
In a slideshow filed with the U.S. Securities and Exchange Commission on July 13, Lucid Motors listed more than 10,000 reservations for the Lucid Air, representing $900 million in projected sales. It claimed the Air beats Tesla Model S and Amazon-backed EV startup Rivian’s R1T in battery efficiency, calling it the ultimate benchmark for EV technology. It also claims that the Air beats luxury EVs from Jaguar, Porsche and Audi in that area.
Lucid touts EV technology it has developed in-house. It describes the Lucid Air as the “fastest, longest and fastest-charging electric car in the world”, with a range of 500 miles. The Environmental Protection Agency has not yet certified that range. The Air also boasts high-end features such as a ‘glass cockpit’. The Lucid Air features an autonomous driving system with 32 sensors, including long-haul Lidar, a safety technology that Tesla has long avoided.
The first fully loaded Air will cost about $160,000, including federal grants. Cheaper versions will be released, with a $70,000 version expected in 2022, according to the Wall Street Journal.
LCID Stock Technical Analysis
LCID stock is trading about 60% of its highs as it trades back above the 50- and 200-day lines. Stocks form the right side of a deep consolidation base showing a buy point of 29.91.
According to the IBD stock control, Lucid Motors stock shows a weak 49 of a perfect 99 IBD Composite Rating. The Composite Rating helps investors easily measure a stock’s fundamental and technical statistics. Weak IBD Composite Ratings are normal for new problems.
Lucid Motors Stock News
On July 23, Lucid Motors shareholders voted to approve the company’s blank check merger.
In mid-July, the company said it had completed its pre-production phase after a series of delays. “The testing and validation of Lucid Air is going well,” said CEO Peter Rawlinson during the call Bloomberg. “It is on track to start production for customer delivery in the second half of 2021.”
On September 1, the lock-up period for PIPE (private investment in public equity) investors ended, allowing them to sell shares. The stock plunged nearly 11% in response.
On September 16, the company said: its Lucid Air sedan received an EPA rating of 520 miles of range. The Lucid Air beats the Tesla Model S Long Range by over 100 miles.
Is Lucid Motors Stock Now a Sale?
LCID shares fell more than 2% on Friday.
Lucid Motors stock is a promising long-term EV stock that is expected to begin delivery of its first electric vehicle in late 2021. Shares of Lucid Motors are far from a good buying point, so the stock is not a buy at this time. Keep a close eye on the stock to see if it continues to build the right side of a deep base, providing a new buying point.
Best EV Stocks to Buy and Watch: Nio, Tesla
One of the best EV stocks to buy and watch, Tesla (TSLA) is trading just above its key 50- and 200-day moving averages. Tesla stock recently found support at the 40-week line on the weekly chart, and now it spends some time above the 10-week moving average. These are encouraging signs.
Another EV stock to keep an eye on is the Chinese leader Nioz (NIO). Nio shares are consolidating below the 50 and 200 day moving average lines. Stocks are over 40% off their 52 week high.
For more leading stocks and stocks approaching buying points, check out these IBD stock lists, such as the stocks near buy zones. Check out IBD’s signature daily analysis, The Big Picture, to see the current trend in the stock market.
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