Lucid’s Future Growth Unclear By TipRanks

In 2007, Lucid Motors (LCID) introduced itself as an enterprise that develops next-gen electric vehicle technology. Since the beginning, Lucid has been both praised and criticized. Recently, this company has been gaining investors’ trust and has been rallying nicely.

On July 23rd, Lucid Motors went public after merging with Churchill Capital Corp IV.  The company made its debut on the Nasdaq, and now operates under the name Lucid Group (ticker symbol LCID and LCIDW). This merger provided funding of approximately $4.4 billion to Lucid to facilitate the company’s growth.

Using this capital, the company plans to launch its first in-house electric car, the Lucid Air, at the end of 2021. 11,000 paid reservations have already been made for this vehicle. Deliveries for the Lucid Air are expected to begin in earnest later this month.

LCID stock, like many EV stocks, has been shrouded in skepticism of late. Various growth investors tout the potential of this company. However, bears tend to focus on the company’s valuation as a reason to stay away. I remain on the fence with LCID stock, holding a neutral view right now.

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The Post-Merger Hype

That’s not to say there isn’t reason to be bullish on LCID stock. Indeed, the post-merger hype around this company has been incredible. With deliveries of the Lucid Air expected to really ramp up this quarter, investors will get a good look at how this stock’s growth trajectory looks in early 2022. Accordingly, investors bullish on Lucid’s potential have reason to jump into this stock now.

This merger went through relatively smoothly. The formation of Lucid Group has been approved and cheered upon by investors. Post-merger, Churchill IV has taken itself off the NYSE and shifted all its shares to operate under LCID. Peter Rawlinson, CEO of Lucid Motors, continues to lead the post-merger company.

Let’s now get to why this SPAC merger has been so hyped. The capital raised by this merger is being used to expand the company’s factory in Arizona by 2.7 million square feet. This expanded space will be used to increase the company’s manufacturing capacity, allowing Lucid to benefit from rising demand over time.

Those bullish on Lucid’s long-term prospects will like this investment.

Indeed, the company’s recent stock price movements have indicated a cautiously optimistic view of LCID stock. As LCID debuted on Nasdaq, its price shot higher by 19%. That said, since then, a series of selloffs and rallies have resulted in this stock trading in a relatively wide range. Investors are still trying to assess the true value of this early-stage EV growth stock.

Whether Lucid can live up to the hype remains to be seen. However, analysts remain reasonably bullish on LCID stock. Let’s take a look at what the experts think in terms of where Lucid could be headed from here.

What are Analysts Saying about LCID Stock?

As per the TipRanks’ analysts…