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LCID Stock: Lucid Motors Says It Will Adopt Tesla’s Charging Standard

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  • Lucid (LCID) announced that it would start utilizing Tesla’s (TSLA) charging standard for electric vehicles in 2025.
  • The move could increase the demand for Lucid’s EVs.
  • However, many of Lucid’s competitors have also announced that they would adopt the standard. As a result, the impact on LCID stock may be minimal.
LCID stock - LCID Stock: Lucid Motors Says It Will Adopt Tesla’s Charging Standard

Startup electric vehicle (EV) maker Lucid Motors (NASDAQ:LCID) announced yesterday that its EVs would utilize the North American Charging Standard (NACS) by 2025. The NACS system is more commonly known as Tesla’s (NASDAQ:TSLA) charging standard for electric vehicles.

More About Lucid’s Decision

By equipping its EVs with the NACS standard, Lucid will enable the owners of its EVs to utilize Tesla’s more than 15,000 charging stations in North America starting in 2025. However, the owners will need to use an adapter in order to access the NACS chargers. But in about two years, it will be much easier for those who own Lucid’s EVs to find and utilize charging stations.

Further, the automaker will begin adding the NACS plug to its EVs in 2025. Consequently, those who buy its EVs starting then will be able to use Tesla’s charging stations without an adapter. Those changes should increase the allure of Lucid’s vehicles, potentially causing its deliveries to rise meaningfully.

But on the other hand, many other automakers have said that they would adopt NACS. Among the companies in the latter category are American automakers like General Motors (NYSE:GM), Ford (NYSE:F) and Fisker (NASDAQ:FSR).

European automakers Stellantis (NASDAQ:STLA), BMW (OTCMKTS:BMWYY), Polestar (NSDAQ:PSNY) and Mercedes (OTCMKTS:MBGYY).

And finally, Asian automakers like Subaru (OTCMKTS:FUJHY), Toyota (NYSE:TM) and Hyundai (OTCMKTS:HYMTF).

So, given the fact that so many of Lucid’s competitors are already in the process of switching to the NACS standard, LCID is unlikely to get much of a competitive advantage from its decision.

LCID Stock: What Investors Should Be Watching

Going forward, the owners of LCID stock and those thinking of buying the shares should try to determine the extent to which the change to the NACs standard is boosting the demand for its EVs.

On the date of publication, Larry Ramer 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.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.


Article printed from InvestorPlace Media, https://investorplace.com/2023/11/lcid-stock-lucid-motors-says-it-will-adopt-teslas-charging-standard/.

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