On Monday July 26th Churchill Capital Corp. IV took the luxury electric vehicle maker Lucid Motors public. After the first day of trading is it worth buying Lucid Motors?
In February, Churchill Capital IV (CCIV) a special-purpose acquisition company announced a deal with Lucid Motors giving the value of the company $24 billion. Lucid Motors is going public to accelerate growth.
Shareholders of CCIV voted on Friday to approve the merger of Lucid Motors. The company now trades under the symbol LCID.
Lucid Motors anticipated sales
Lucid will be delivering its Lucid Air, a high luxury electric vehicle sedan in late 2023. The company expects to release it’s gravity performance SUV in late 2023. They have completed their preproduction phase.
In a filing with the SEC, Lucid Air touted that they have more than 10,000 reservations for their Lucid Air vehicle, representing $900 million in anticipated sales. Lucid Motors claim the Lucid Air beats Tesla Model S and Amazon backed EV startup Rivian’s R1T in battery efficiency.
Lucid promotes their in-house created electric vehicle technology. The Lucid Air is described as the “world’s fastest, longest-range, fastest-charging electric automobile,” with a range of 500 miles. That range has not yet been certified by the Environmental Protection Agency. A “glass cockpit” is one of the Air’s high-end features. The Lucid Air has a 32-sensor automated driving system, including long-range Lidar, a safety element that Tesla has long resisted.
With federal subsidies, the first fully outfitted Air will cost roughly $160,000. Versions that are less expensive will be released, with a $70,000 model planned in 2023, according to The WallStreet Journal.
Is Lucid Motors a buy or sell?
On the company’s second day of trading as Lucid Motors, LCID stock dropped about 3%. Lucid’s stock soared more than 10% in its first public offering (IPO) on Monday.
Lucid Motors stock is a long-term EV stock with its first electric vehicle expected to be delivered in late 2023. Lucid Motors’ stock is not a buy right now since it is far from a decent buy point. Keep a watch on the stock to see if it forms the right side of a deep base, which would open the door to a fresh entrance.
