- Lucid Group’s (LCID) stock hit a few bumps in the road during the company’s most recent earnings release.
- However, the company is moving forward with a major initiative in an important regional market.
- Investors should consider adding shares of Lucid while they’re still trading at a relatively low price point.
California-based electric vehicle (EV) manufacturer Lucid Group (NASDAQ:LCID) offers vehicles that are both sleek and powerful. LCID stock looks like a worthy addition, at the current share price, for folks who are bullish on the international EV market.
And by “international,” we mean that literally. Not long ago, Lucid revealed its plan to establish a manufacturing plant in Saudi Arabia, which “may result in up to $3.4 billion of value to Lucid over 15 years.”
Plus, as we’ll discover, that’s not the only country where Lucid is extending its presence. Still, there are skeptics who are worried about Lucid Group’s financial figures — but soon enough, those stats could be ancient history.
| LCID | Lucid Group | $25.23 |
What’s Happening With LCID Stock?
Since Lucid is an up-and-coming EV maker with disruptive potential, the company’s fourth-quarter 2021 update was a significant event.
For that quarter, Lucid Group generated revenue of $26.4 million, which by itself looks like a respectable figure. Yet, apparently it wasn’t good enough for Wall Street, as the analysts had expected $36.7 million.
Lucid also evidently fell short of the analysts’ expectations regarding the company’s quarterly earnings per share. Bear in mind, though, that this quarter took place three months ago, and it’s not unusual for EV start-ups to go through growing pains on the way to bigger and better things.
Still, LCID stock fell after the quarterly update was released. That’s a shame, as Lucid has announced some positive news. Specifically, the automaker’s customer reservations had exceeded 25,000, reflecting potential sales of over $2.4 billion.
However, sometimes it’s difficult to impress the investing community. Even as Lucid updated its 2022 production outlook for the Lucid Air to a range of 12,000 to 14,000 vehicles, some LCID stock traders divested their shares.
They may come to regret that decision someday. The Lucid share price has been twice as high as it’s trading today, and as the EV market grows, Lucid Group is poised to grow with it.
Expanding Pronto in Toronto
We already alluded to Lucid’s geographic market presence, which can be described as multi-national. In that vein, Lucid Group is staking its claim in a regional market with excellent potential.
First of all, the company just opened its newest Studio location at the Yorkdale Shopping Centre, in the Canadian city of Toronto. With this, Lucid Group can now claim two Canadian Studio locations, and a total of 23 locations in its North American retail network.
Canada could provide a significant revenue source for Lucid Group. The company is preparing to commence Lucid Air deliveries there during the spring. Plus, there’s more exciting Canada-centric news for Lucid’s stakeholders.
According to the press release, Lucid “has collaborated with Electrify Canada to offer those who reserve a Lucid Air by June 30, 2022, two years of complimentary charging on the rapidly growing charging network.”
This incentive ought to get more Canadian EV shoppers interested in the Lucid Air. Furthermore, Electrify Canada’s chargers are known to be fast and powerful. Reportedly, they’ll enable some Lucid Air owners to charge up to 350 kilometers (210 miles) in 15 minutes.
What You Can Do Now With LCID Stock
Above all else, LCID stockholders must be patient even if they’re excited about the company. It could take a while for the stock to return to its prior peak price. LCID stock currently holds a “C” rating in the Portfolio Grader.
Still, the reward-to-risk profile looks favorable at the current share price. Granted, the prior Wall Street earnings “miss” disappointed some investors. However, that’s in the rear-view mirror and Lucid Group is clearly in expansion mode now.
That’s good news for EV market enthusiasts who are in the market for a truly disruptive company to invest in. If this describes you, then you’re invited to consider a moderately sized position in Lucid Group.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
