Lucid Motors (NASDAQ:LCID) stock had an incredible 2021. Shares of the up-and-coming luxury EV maker shot up over 280% in the year.
Lucid stunned the market with massive developments during the latter half of the year.
It will begin commercial production and expansion into the European and Saudi Arabian markets. Hence, LCID stock is poised to be a winner this year again.
LCID stock has been going through a correction after its last October rally, which took its price to as high as $57. The stock trades at more than 50% lower than its 52-week high price of $64.86.
The pullback is largely a result of supply chain bottlenecks, the omicron event, and the Federal Reserve’s hawkish monetary policy.
Nevertheless, 2022 will be a landmark for Lucid, as it looks to ramp up demands. It will pivot from its initial success and ramp up production gaining a healthy market share in the coming year.
Delivering on Its Promises
Lucid had talked a big game about its luxury EVs having the longest range in the sector.
Many industry insiders were skeptical about its lofty claims until the Environmental Protection Agency awarded its Air Dream Edition the longest range rating in September.
It came in more than 100 miles ahead of the Tesla (NASDAQ:TSLA) Model S, its closest competitor. Furthermore, in November, the Lucid Air opened to rave reviews and was awarded the “2022 car of the year” award from Motor Trend Magazine.
The EV maker revealed that it had received 13,000 reservations across its four models after the third quarter. These reservations came in at a whopping $1.3 billion. By November 15, its reservations had topped 17,000 units.
Lucid’s CEO Peter Rawlinson said that the goal is to mass-produce cars and bring down their costs significantly.
The company has kicked off its expansion efforts developing a facility that can produce close to 90,000 vehicles annually by the conclusion of 2023. The goal is to take things up a few notches in its phase 2 expansion plans.
International Expansion
Lucid will expand its footprint across the Middle East and the European markets this year. The goal is to establish itself as a global luxury EV brand and solidify its position as a major player.
Moreover, the company has invested in its management team and leadership to take advantage of these prospects.
The Saudi Public Investment Fund is Lucid’s largest shareholder at this time, with an ownership stake of roughly 62%, worth over $35 billion.
According to management, Saudi Arabia could potentially become its second-biggest market outside the home.
Rawlinson recently talked about how it was “really heartening that the country which gained its wealth based upon its carbon economy is so forward-looking and sees the efforts in corrective product“.
Adding to its bull case is its massive opportunity in Europe, and with that, Lucid could be delivering cars in three markets by the end of 2022. The company is expected to generate upwards of $30 billion within the next ten years, growing at over 30%.
Final Word on LCID Stock
This year will be a real test of Lucid Motors’ manufacturing abilities. It has enough funds for capital spending over the next five years to maintain and create more demand for its car while ensuring a debt-free balance sheet.
LCID stock is an attractive investment at this stage, especially after the correction.
On the date of publication, Muslim Farooque 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
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.
