shares in this article
• The analyst recommends buying the electric car maker card because of its superior batteries
• Daily production report from 40 to 50 electric cars
Shares of electric car maker Lucid have not been doing well so far this year. But now, earlier in the week, equity brokerage expert RF Lafferty caused a significant improvement in sentiment with his analysis. A report – as yet unconfirmed – that Tesla’s rival has significantly increased production of its vehicles has electrified investors.
Analyst Praises Lucid’s Battery Tech – Better Than Tesla?
In an analysis on Monday, according to Barron’s, RF Lafferty analyst Jamie Perez praised Lucid’s battery technology, which is also used in the Formula E electric racing series. “Proprietary battery technology is the key differentiator. for Lucid as it offers both autonomy and performance, “said Perez. The Lucid Air Dream Edition has around 1,100 horsepower and can travel around 520 miles on a single charge, the equivalent of nearly 840 kilometers. According to the news website, the Lucid electric vehicle then achieves 4.4 miles per kilowatt hour, while Tesla only offers around 4 miles per kilowatt hour with the Model Y Longe Range.
In addition, according to “Seeking Alpha”, the Perez analyst’s study also points out the large number of pre-orders – despite the high price. Because the Lucid Air Dream Edition can cost up to US $ 170,000. However, Lucid has received more than 37,000 bookings for the Air model, totaling $ 3.5 billion, according to the analyst. In addition to the regular pre-orders, there is also an agreement with the Kingdom of Saudi Arabia to purchase up to 100,000 electric cars within the next ten years.
Although Lucid is planning cheaper models in the future, RF expert Lafferty locates the electric car maker in the luxury segment. The analyst is said to have stated in “Seeking Alpha” that he is confident that Lucid will be able to target high-end customers with sedans, SUVs, crossovers, pickups and coupes by the end of the decade.
With so much praise, it’s no surprise Jamie Perez included the Lucid stake in his valuation with a buy recommendation. The expert set the price target in his study at 19 US dollars, but did not indicate a time horizon for this. Lucid stock then rose 9.75% to $ 16.55 in NASDAQ trading on Monday. The stock was last listed at USD 16.49, which means there is still upside potential of around 15% up to the target price (as of the closing price on September 16, 2022).
Rising production rates continue to drive Lucid inventories
But it wasn’t just the analyst’s study that caused the fireworks on the price of the Lucid stock on Monday. A report from the Wccf tech website also fueled the paper, according to The Motley Fool. Citing an “inside source” and a forum for Lucid owners, he wrote that between 40 and 50 vehicles per day are currently rolling off the Lucid assembly line. Production will soon be increased from 50 to 60 vehicles per day. However, this information has not yet been confirmed by Lucid.
According to The Motley Fool, if the report turns out to be correct, it would be a huge improvement over the latest official figures, which indicated Lucid was only able to produce 5 to 15 electric cars per day. Lucid would therefore come much closer to its forecast of producing between 6,000 and 7,000 electric cars in 2022 than it previously seemed.
Financeen.net editorial staff
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Image Credits: Lucid, TIMOTHY A. CLARY / AFP via Getty Images
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