EV maker Lucid (NASDAQ:LCID) stock just unveiled the newest edition of its popular Air luxury sedan. The faster and more efficient Grand Touring has its competitors sweating buckets with its best-in-class performance.
The 1,050-horsepower vehicle boasts a 446-mile range and can travel up to 520 miles on a single charge. Moreover, a $179,000 performance model, The Grand Touring Performance will arrive in June this year. The Lucid Air Grand Touring has made quite an impression on the critics with its unmatched performance numbers.
It can effectively accelerate from 0 to 60 miles per hour within three seconds. Additionally, the high-performance model can accelerate even faster at just 2.6 seconds. Also, these cars come with a super-fast 900-volt+ charging system, adding 300 miles within 21 minutes. Lucid’s CEO, Peter Rawlinson, discussed how the company had set itself apart from its peers with in-house manufacturing and vertical integration.
Nevertheless, the company is still early in its production cycle. It has built around 400 vehicles since production commenced in September. However, with the supply-chain disruptions, it now only expects deliveries of 12,000 to 14,000 vehicles this year. The updated guidance significantly reduces its previous expectation of 20,000 deliveries.
Lucid has an incredible product with a robust growth runway ahead. However, its humungous capital expenditures may weigh down its business and stock price. It plans to spend a whopping $2 billion in research and development efforts, building showrooms, and funding factory expansions.
Despite having $2.4 billion in potential revenue from reservations, its operational expenses remain a major concern. Nonetheless, The Grand Touring will be a key differentiator for Lucid, in a swath of EV producers. It’s best though to ease in LCID stock in your portfolio and scoop up some shares on the dip.
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
