Lucid Stock Retains Long-Term Potential Despite Production Goal Change

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LCID stock - Lucid Stock Retains Long-Term Potential Despite Production Goal Change

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Lucid Group (NASDAQ:LCID) has fallen over 36.6% YTD, although at $24.55 per share it has drifted up from a mid-March low of $21.55. The main reason is LCID stock is still reeling from its Q4 earnings release where it lowered production targets to just 12,000 to 14,000 EVs in 2022. This is down from the 20,000 EVs that it originally forecast during its IPO process. While this is an issue in the short-term, if LCID meets its longer-term goals, the stock still holds promise.

Lucid now says it will expand production overseas. On Feb. 28 it said 150,000 EVs per year will be made in Saudi Arabia. It expects this would bring in $3.4 billion in value-added over the next 15 years.

Construction of the plant will begin in the first half of 2022, although it’s not clear when production will begin. The plant will be located at King Abdullah Economic City (KAEC), a Red Sea port city just north of Jeddah. Lucid’s Saudi Arabia plant could eventually rival its U.S. production. For example, Lucid’s Casa Grande Arizona plant was originally scheduled to make 135,000 EVs in 2025. This may now be delayed with its lower production targets.

Lucid did not say where these EVs sales will occur. But the production will address the “growing demand for Lucid’s products.”

Lucid also recently said it was expanding into Canada. On March 24, it opened a Studio location at the Yorkdale Shopping Centre in Toronto, Ontario. This should help the company’s efforts to reach non-U.S. customers.

LCID stock investors can expect to benefit from the global expansion of its brand and overseas sales. Once it’s clear when overseas sales will begin with its Saudi Arabian production, Lucid shares could rise higher.

On the date of publication, Mark Hake did not hold (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.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/lcid-stock-retains-long-term-potential-despite-production-goal-change/.

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