The fall has been a season of important catalysts as Lucid Motors (NASDAQ:LCID) takes major steps toward establishing itself among the automakers of tomorrow. The electric vehicle producer has seen a turbulent few months as it faced crucial shareholder deadlines and opened its doors to unveil long-awaited projects. For fans, though, the wait is about to be over. Lucid appears to be kicking off the process of delivering its cars to excited buyers and LCID stock is reacting well so far.
The Next Catalyst for LCID Stock
Yesterday brought some exciting news for Lucid followers as the company tweeted a confirmation that it would indeed be starting deliveries. Subtle yet direct, the tweet didn’t need many words to confirm that the long-awaited Lucid Air was about to take to the highway. One photo told investors everything they needed to know.
#DreamAhead pic.twitter.com/hVsGQG6f6z
— Lucid Motors (@LucidMotors) October 24, 2021
Since markets opened today, LCID stock has risen nearly 6%. The past month has been turbulent, with shares rising and falling fairly consistently. As of this writing, they are flat for that period.
This new milestone may be just the thing that finally turns the company around.
What It Means
The EV market has been fascinating to watch recently as leaders from both business and policy circles have embraced the mentality that the future of transportation is electric. This is particularly true within the automotive sector. While Tesla (NASDAQ:TSLA) has the dominant market share, Lucid has done a good job of staying relevant and generating consistent media coverage. InvestorPlace contributor Joel Baglole just listed both Lucid and fellow EV innovator Nio (NYSE:NIO) has the two companies with the power to compete with Tesla and dominate the EV space throughout the coming years.
Most recent news has been good for Lucid. The company has had other catalysts recently, such as the opening of retail locations in Canada. InvestorPlace analyst Louis Navellier recently noted that the new Lucid Air has been receiving excellent reviews so far and LCID stock is benefitting. As he sees it, the continuation of this trend could put Lucid within “Tesla-beating range” though the smaller company still has considerable ground to cover.
Why It Matters for LCID Stock
Since this season began, most of Lucid’s competitors have had the advantage of actually having released physical vehicles that the public can view and drive. As of this week, though, that will be over as Lucid’s vehicles start appearing in showrooms and driveways across the country. This timeline may have caused LCID stock to fluctuate in the short term but it has also led to considerable hype.
Lucid cars are finally here, and investors are betting they’re here to stay. While it’s true that the success of any EV producer in 2022 will depend on an ability to procure batteries and thereby battery components, Lucid is well positioned to take its place among the household names supplying the ever-growing EV marketplace. Anyone considering boarding the LCID stock train should be watching very closely.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
