The EV Darkhorse
2022 could be the year that Lucid Motors (LCID) put a dent in the universe as one of the many EV upstarts hoping to eventually challenge Tesla (TSLA) one day on top of their lofty perch.
Realistically, many EV companies never get to the point of delivering cars, like fraudulent company Nikola (NKLA), but Lucid has started to roll out new cars to US customers.
Things move fast in the EV industry and Lucid has announced they are planning to start shipping cars in Europe sometime this year.
The stock exploded to the upside on the announcement.
Conceptually, the idea that Lucid is expanding fast, creating and looking to take advantage of the total addressable market in Europe only signals to investors they are doing all the right things in all the right places.
I believe there is loads of momentum in EV cars today, and their trajectory this year is impressive as we are seeing it in our news feeds.
I am not just talking about Tesla, but the mainstreaming of the product will help the next in line to build something competitive to Tesla and Tesla blazing an early trail has helped really legitimize the industry.
Sure, at the micro level, there are still teething pains with EVs, like waiting an hour for your Tesla X to charge at a supercharger.
The science behind it still needs to catch up to the point where someone can just get behind a wheel and drive coast to coast without crunching the logistics designed for the trip.
Germany will probably be the most important European market for Lucid, being a car-first society while the citizens harness high purchasing power.
Lucid also wants an expansive taste of Europe by expanding all over and that means places like Sweden and Switzerland.
The company is currently building its only model, the Air sedan, at its Arizona plant, yet the volume of cars is kept from the public view.
The firm pumped out a few hundred cars in 2021 but wants to ramp up to 20,000 by the end of 2022.
The vehicles it has delivered so far don’t have a full variety of active safety aids online, but they will be enabled via an over-the-air updated by the end of January.
Just like Tesla, Lucid will probably try to push its direct sales model in Europe as well. The manufacturer has already announced plans to set up nine Lucid Studios in the United States and major European cities are in the mix as well.
Lucid CEO Peter Rawlinson has already stated that the company also plans to roll out in the Middle East in 2022, with China following in 2023 so there’s a lot in the pipeline here, but it could be biting off more than they can chew.
If the “EV trade” catches fire this year which is certainly in the realm of possibilities, I see the stock doubling from $42 to over $80 per share.
Let’s not forget that the used car market is so hot that it costs almost as much as buying a new car.
Energy is higher across the board, so why not slap on some solar panels on the roof and drive an EV for free instead of indulging in expensive fossil fuels?
The Saudi Arabia's Public Investment Fund has previously stated that they will not be selling any of their Lucid Motors shares until beyond 2030, which is why they are planning to sell these EVs in the Middle East.
When the PIF gave Lucid Motors an investment of $1 billion in 2018, that deal was contingent on Lucid Motors building a plant in Saudi Arabia.
Lucid is projecting themselves to be a leader in solar, and by 2026 they estimate that they will make over $22 billion a year from their Renewable Energy division.
This EV company has a solid foundation, and if the cars stack up nicely against the Teslas of the world, then they really have the potential to uplift the stock price in 2022.
Reviews of its car have been generally good, with highlights like world-class efficiency, miraculous packaging, and amazing performance and comfort.
This could be the dark horse of EV’s in 2022 and I am looking out for a splashier Lucid EV model in the years ahead. I am bullish on Lucid Motors.
