Lucid Motors hosted an investor call yesterday in which management provided updates on the business ahead of its impending merger with Churchill Capital (NYSE:CCIV). CCIV stock rallied into the call, but dropped soon after.
Despite maintaining that Lucid is on track to begin delivering its EVs in the second half of 2021, investors zeroed in on the fact that CEO Peter Rawlinson did not deliver a definitive date for said deliveries.
This vague answer didn’t please investors, who perceived it as weakness.
However, Rawlinson knows Wall Street is a stickler for deadlines. By sticking to Lucid’s prior delivery estimate range, he is refusing to give investors a deadline the company can’t meet.
This makes sense. And this is the reason we walked away from the call bullish.
With Rawlinson, you have a CEO who wishes to underpromise and overdeliver.
Or, at the very least, he doesn’t want to give Wall Street a date that Lucid Motors cannot meet with 100% certainty.
And in the grand scheme of things, whether deliveries begin in the third or fourth quarter won’t make a difference. Wall Street is just being finicky.
More importantly, Rawlinson endorsed Lucid’s five-year outlook yesterday, in which the company targets 251,000 deliveries and revenues of $23 billion by 2026.
The Bottom Line on CCIV Stock
Lucid Motors sticking to long-term targets yet failing to disclose an exact date for EV deliveries give us confidence that management’s own confidence in Lucid’s long-term outlook is strong and genuine.
And for that reason, as well as everything we’ve been praising Lucid Motors for recently, we remain bullish on the long-term growth prospects of CCIV stock.
Which is why CCIV is one of my top picks in the world of Next-Gen Mobility. And, long-term, we believe Lucid Motors stock will score investors big returns, but it’s far from the only hypergrowth stock on my radar.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.