After a September marked with catalysts, Lucid Motors (NASDAQ:LCID) has enjoyed a more stable October. It has been cruising along, and further developments have generally been good news. LCID stock saw some declines during the month’s first week, but since then it has been climbing steadily, indicating that the company may have staying power.
Since the events of September that showed investors what the company had been working on, Lucid has moved out of pre-production mode. This should be encouraging for those seeking a bullish play in the electric vehicle race. Indeed, InvestorPlace’s Chris Markoch recently touted the utility of LCID stock as underpriced name with significant potential. He noted that “Lucid is doing what other EV companies are still only promising. And that shouldn’t be overlooked.”
LCID stock is off to a good start this week, trending on Yahoo Finance with shares up 3.32% as of this writing. Even with the good news noted by Markoch, there are plenty of other factors at play to consider when evaluating Lucid. Let’s discuss them.
Rev Your Engines: 5 Catalysts for LCID Stock
Last week saw Lucid announce that it would be delisting all outstanding public warrants. When the decision was announced in September, InvestorPlace’s Will Ashworth compared the company’s call to a get-out-of-jail-free card. Given the ways in which LCID stock has risen since then, it is clear that the endeavor has paid off for Lucid, at least in the short term. The influx of cash comes at a good time for the company as manufacturing efforts increase along with Lucid’s reach across international markets
On that note, pre-sales have so far gone well for the Lucid Air, the company’s flagship vehicle which had over 13,000 reservations as of last month. October brought a new and exciting development, though, as more plans were announced for the Lucid Gravity, a crossover luxury SUV. The company is offering two choices for it so far, both of which are all-wheel drive, a feature which will likely be enticing to buyers with young families.
More recently, Lucid announced the opening of its first Canadian store in Vancouver on Oct. 16. Canadian pricing begins at 105,000 CAD for the Lucid Air Pure, marking the first time that Lucid has confirmed pricing in an international market. Buyers from all over Canada are now able to reserve Lucid Air models online. This type of international reach could yield excellent results, particularly as demand for EVs in Canada is growing and the market seems to have fewer models available than in the U.S.
Rumors and Rivals Lift Lucid Motors
In other recent news, rumors have been circulating on Twitter recently that the Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia, is considering furthering its relationship with Lucid. As of now, there is absolutely no confirmation that this is anything more than hearsay, but we do know that an earlier investment in Lucid from PIF proved quite profitable. This would certainly be an opportune time for the fund to invest more as Lucid demonstrates its power and utility. While we should always be careful with rumors, this is one worth paying attention to and watching for further developments.
As a final development worth noting, another EV producer is also making big moves today. Foxconn Technologies unveiled three new EV prototypes — an SUV, sedan and a bus. Given the lack of luxury electric SUVs and buses, this has investing communities buzzing about Foxconn. However, despite the move by a rival, Lucid’s upward trajectory indicates that the company has established itself as a major player in the EV space.
All this points to Lucid being here to stay. The Lucid Air may be a ground vehicle but the company behind it appears to be taking off.
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.