Will Lucid Reach $100?
Lucid is one of the fastest-growing EV startups. With the acceptance of EV vehicles increasing, Lucid will likely play a major role in the coming years. Therefore, there are chances of Lucid Stock price risings higher.
Considering the current Lucid Stock price, the question arises, “Will Lucid Reach $100?”. Read on for the information.
What are the Factors that Affects Could Affect the Lucid Stock Price?
Positive Factors
Good Revenue and Earnings: The stocks are largely affected by better revenue and earnings. Rivian is yet to release its Q4 result for 2022. However, Rivian recently released its quarterly production result which showed an increase in quarterly production, and a 663-unit miss for Rivian’s overall 2022 goal of 25,000 vehicles produced. Rivian produced 10,020 vehicles in Q4 and delivered 8,054, which means the company produced 24,337 and delivered 20,332 vehicles over the course of the full year. This result led to a surge in RIVN stock price.
In the coming future, with an increase in production and Rivian delivering more cars, its share price are set to rise higher.
Cheaper Cars In Pipeline: One of the arguments against Lucid is its expensive cars, which may not be attractive for 2023. But Lucid is coming up with lower-priced models like Air Grand Touring, Air Touring, and Air Pure. While the first model of Air Touring was delivered in November 2022. It also expects to deliver Air Pure soon. Lucid Group recently launched a high-end super sports electric sedan named Sapphire and expects to start production of it in 2023. A company’s R&D strength is visible with the products in the pipeline, and Lucid seems to be firing all cylinders in developing a robust pipeline to stay in the EV competition for decades to come. The company can generate additional revenue in 2023 from Gravity and other models.
Better 2023 and Coming Years: In 2022, Lucid cut its production guidance twice to 6,500, but the good news is that it is hoping to produce 34,000 units in 2023. It said in November that it is on track to increase its total annual installed capacity to 90,000 units in 2023. It already has a capacity of 34,000 EVs per year. Therefore, considering the expansion of the company to follow, LUCID is expected to have better years going forward.
Negatives:
Bad Revenue and Earnings: Rivian is yet to report good revenue and has missed all the EPS targets in 2022. This has negatively impacted the Rivian Stock Price. In the future, if Rivian continues to post negative revenue and EPS the stocks are unlikely to rise.
Rivian motors EPS for 1st three quarters of 2022:
| Rivian Automotive Quarterly EPS | |
|---|---|
| 2022-09-30 | $-1.88 |
| 2022-06-30 | $-1.89 |
| 2022-03-31 | $-1.77 |
Not to Repeat the Mistakes of 2022: 2022 was a rough year for Lucid like any other EV maker. The overall production of Lucid fell more than 80% in 2022. Lucid started the year with a shock when it slashed the full-year production outlook from 20,000 to only 12,000-14,000 Lucid Air cars due to supply chain issues. By this time, the company had received 25,000 bookings. Another major jolt to the investors was felt in August when management said it will only be able to produce 6,000 to 7,000 units in the 2022 full year, but in contrast, Lucid had received 37,000 bookings by end of the second quarter.
Macroeconomics: Macroeconomics plays the most important role in determining the rise and fall of the stock even if the technicals are good or bad. LCID shares lost 29% in November and another 33% in December 2022 due to ongoing bad macros. Fed is continuously increasing the interest rates and as a result, there are high chances of a recession in the US in 2023. While the economy appears to be getting better, there are no guarantees at the moment given the uncertainties on commodity prices, Russia, and how China’s recovery will play out on inflation.
Will Lucid reach $100: Assets of Rivian
Total assets can be defined as the sum of all assets on a company’s balance sheet. Rivian Automotive’s total assets for the quarter ending September 30, 2022 were $19.023B, a 124.12% increase year-over-year.
For 2021, the total assets were $22.294B, a 384.44% increase from 2020.
Will Lucid Reach $100? A Calculation using EPS
Rivian Automotive has had its EPS in the negative for the last 3 years. Therefore, it would not be possible to determine when the stock price will reach $100. However, we can consider a few growth parameters to determine when Lucid can reach $100:
- If the stock price of Lucid Automotive rises 25% a year from now, the Lucid Stock price will reach $100 in the next 9-10 years which is in 2032 or 2033.
- In case Lucid gains 35% a year from the current price then by 2030 Lucid’s Stock price will reach $100.
Conclusion
Lucid Stock price has the potential to rise higher as the demand for Electric Vehicles is predicted to surge in the future. Lucid will be one of the major players in the EV market.
However, for Lucid stock to reach $100, along with the EV market, the macro factors will have to be in its favor.