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Tue, June 6 at 7:00PM ET

Lucid Group and the Rest of the EV Stocks Get Tesla Boost

LCID Stock - Lucid Group and the Rest of the EV Stocks Get Tesla Boost

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Lucid Group (NASDAQ:LCID) CEO Peter Rawlinson was likely happy about Tesla’s (NASDAQ:TSLA) April 2 press release about its delivery numbers in the first quarter. In a contrarian way, the news ought to be good for LCID stock and the other electric vehicle (EV) manufacturers trying to catch Tesla’s big lead in the marketplace. 

In the first quarter, Tesla reported very healthy growth with 310,048 vehicles delivered and 305,407 produced in Q1, 2022. Deliveries in the quarter were 68% higher than 184,800 delivered in the same quarter a year earlier. However, Wells Fargo analyst Colin Langan suggested earlier this year that Tesla would struggle to deliver 50% growth in 2022.

“I’m a bit shy of their forecast of 50% growth. I think it’s gonna be tough by the second half of the year. It honestly may not even be tested if there might not be an up semi supply for them to deliver 50% growth,” CleanTechnica reported the analyst saying in January.

The news suggests analysts might have to recalibrate their financial models to consider a more robust than expected global EV market. 

On March 24, Lucid announced that it would begin Canadian deliveries of the Lucid Air starting this spring. As part of its move to capture Canadian market share, it also has opened its newest studio at Yorkdale Shopping Mall in Toronto. Yorkdale is the company’s 23rd studio in North America.  

“Opening a Studio at the largest shopping destination in Canada will help us elevate the brand in Canada as we continue to expand in North America,” said Zak Edson, Vice President of Sales and Service, Lucid. “We are looking forward to seeing the longest-range EV driving, and charging, on Canadian roads soon.”

As Lucid ramps up its production and deliveries in 2022, the last thing it needs is a global EV implosion, just as it’s looking to get car buyers to open their wallets and pay a minimum of 105,000 CAD ($84,090) for its luxury EVs. 

Lucid ought to do very well in Canada’s largest and one of its wealthiest cities. However, the latest news from Tesla is doing wonders for LCID stock prices.   

On the date of publication, Will Ashworth 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 Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.

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