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3 Reasons to Buy Lucid Motors Over Tesla Stock

We’ve been pounding the table on Lucid Motors and Churchill Capital (NYSE:CCIV), the SPAC behind Lucid Motors, for a while now. We believe the company is in a prime position to steal significant market share from Tesla in the premium electric vehicle (EV) category over the next few years.

A photo of the Lucid Motors Air EV from 2018.
Source: ggTravelDiary / Shutterstock.com

Consequently, it’s a better bet to go all-in on CCIV stock and leave Tesla (NASDAQ:TSLA) behind.

This isn’t something we’ve come to lightly, either. Which is why we’ve put together our three main reasons behind why Lucid Motors stock beats out Tesla stock for our EV stock of choice.

CCIV Stock: Lucid Motors Is the Best Luxury EV Available

For one, Lucid Motors makes superior vehicles. It’s creating the world’s best luxury EV, which isn’t comparable to anything else in the market. Lucid accomplished this feat due to having one of the most brilliant engineering teams around — led by the same engineer who masterminded Tesla’s premiere luxury model, the Model S.

Lucid’s super strong team has built a super strong EV, dubbed the Lucid Air. It comes in a variety of versions, the most deluxe of which is the Lucid Air Dream Edition. This version features 500-plus miles of driving range and nearly 1,100 horsepower.

Those specifications are unrivaled in the rest of the EV market. Not even Tesla’s latest and greatest Model S Plaid can compete. Tesla had plans for a competing model at one point, the Model S Plaid+, but those plans were scrapped earlier this month. To us, it appears that Lucid Motors might actually be ahead of Tesla when it comes to advanced EV engineering.

Not to mention, Lucid Motors is a super connected, super smart car, with a super spacious interior cabin. If that wasn’t enough, it also boasts a top-tier self-driving suite, bidirectional fast charging and pretty much all the bells and whistles you’d desire in a fancy EV.

Lucid Motors is coming to market with the EV industry’s top car. There’s no competition, now that Tesla officially bowed out.

A Stronger Brand

Two, Lucid Motors will command stronger brand equity than Tesla.

One of Tesla’s major problems is that, in its endless pursuit to take over the entire industry — to democratize EVs — they’ve diluted their brand equity.

There is no car brand in the world that successfully sells both $100,000+ cars and $20,000 cars. This is an impossibly feat because of brand equity.

Premium brands don’t sell “value cars,” because they want to preserve their premium appearance. The same way it would reflect well on a luxury fashion company to sell products that everyone is able to acquire. The elite, “status symbol” feel disappears long before entire market dominance takes place. Tesla won’t be the first auto brand to break this trend.

And in fact, this is already happening with Tesla. They attempted to do it all, but in doing so lost their foothold on the luxury EV market they once controlled. Seeing a Tesla on the street, right when Tesla’s started appearing in the wild, was exciting. Sooner or later, it’ll be the same as seeing any other value brand car driving around.

We believe Tesla will successfully democratize EVs. They’ll sell a ton of $20,000 to $50,000 Model 3 and Model Y cars over the next decade. They’ll absolutely kill it in that demographic. But, as we just mentioned, that comes at a cost — high-end buyers will be chased away.

After all, the Tesla Model S, from the outside, is nearly indistinguishable from the Model 3. It certainly isn’t distinguishable to prevent inevitable brand equity erosion.

We see high-end buyers looking for something other than Tesla in the coming years. That something will be Lucid Motors, thanks to the company’s world-class EV and in-tact premium brand equity. Lucid Motors, after all, will only be selling cars that retail above $70,000 for the foreseeable future.

CCIV Stock Is a Bargain

As if those weren’t convincing enough reasons to buy CCIV stock, it’s also a killer bargain.

Lucid Motors is a $37 billion company. Tesla is worth $580 billion.

One is priced for marginal success in the EV category. The other is priced to take over the world.

On Wall Street, expectations matter, and Tesla will have a tough time meeting world domination-level expectations in the coming years. Lucid Motors will have a much easier time meeting, and far surpassing, expectations of marginal success.

To that end, CCIV stock should outperform TSLA stock and is an easy buy.

That’s why CCIV is in my Next-Gen Mobility portfolio in Innovation Investor — my flagship subscription newsletter service compiling the world’s top emerging megatrends and best stocks within each.

But Lucid Motors isn’t the best EV stock to buy. It’s just one of my top electric vehicle stocks, which represent the cream-of-the-crop when it comes to disruptive technological innovation in EVs. These companies all feature second-to-none management teams and massive long-term potential.

To learn which company earns the title of my Top Next-Gen Mobility stock, which could post early-Tesla-like returns, subscribe to Innovation Investor today. You’ll also learn about my other EV standouts, including a secret startup that’s spearheading the self-driving revolution and a company I consider my EV “sleeper” stock of the decade.

To see my entire lineup of innovative next-generation EV stocks, become a subscriber of Innovation Investor today.

On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.


Article printed from InvestorPlace Media, https://investorplace.com/hypergrowthinvesting/2021/06/cciv-stock-3-reasons-to-buy-lucid-motors-over-tesla/.

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