Lucid Motors (NASDAQ:LCID) has cemented its name in the luxury EV space after completing a reverse merger with CCIV. The merger gained serious momentum, with the CCIV ticker reaching heights of $64.86 during the 2020 SPAC boom. Now, as publicly traded company investors are intrigued in what the stock has to offer over the next 5 years. Can Lucid really compete with Tesla over the next 5 years? Here’s what investors need to know about the Lucid Stock Forecast.
Lucid forecasts 135,000 deliveries by 2025
Lucid’s analyst day presentation back in May highlighted the companies strategic plans to take on the luxury EV market over the next 5 years. In particular, Lucid expects to deliver 42,000 luxury, all electric Lucid Air’s in 2025. But that’s not all.
Total deliveries for 2025 are expected to climb to 135,000 based on the companies forecasts. To put this into perspective, Tesla delivered 206,421 EV vehicles in the second quarter of this year alone. The displacement between Lucid’s forecasts and Tesla’s results show why Tesla is the current leader in EV revenue.
Nevertheless, considering that Lucid is starting deliveries behind the 8 ball its growth YOY is still strong according to the company. The Lucid Gravity SUV model is set to do the heavy lifting in 2025. Lucid forecast Gravity sales to account for 63% of total revenue in 2025.
However, all eyes are currently on Lucid’s second half of 2021. The company has begun production of the Lucid Air model and expects deliveries to begin in late October. The success of this launch will have a huge impact on the Lucid Stock Forecast.
Lucid will target a potential market worth $733.2 billion by 2026
Lucid Motors aims to target the luxury EV market as the world continues to transition into more energy efficient solutions. The global luxury car market could be worth somewhere north of $730 Billion by 2026 according to Lucid.
With the tailwind of EV innovation in full swing, the company aims to address unmet needs and revolutionize the EV luxury submarket. For example, the Lucid Air is expected to hold 0.5% of the global EV market share by 2025 according to company estimates. To back the companies thesis, Michael Klein Chairman and CEO of CCIV is confident the Lucid Air will significantly disrupt the EV market over the coming years.
“We are pleased to partner with Peter and the rest of Lucid’s leadership team as it delivers the highly anticipated Lucid Air to market later this year, promising significant disruption to the EV market and creating thousands of jobs across the U.S.” said Michael Klein, Chairman and CEO of CCIV.
How will Lucid Motors stock compare to Tesla in 5 years time?
Investors first made the link between the two companies as Lucid Motors CEO & CTO is Peter Rawlinson spent time as an engineering executive at Tesla. Rawlinson has made the companies intentions clear. Lucid will challenge the EV luxury market share EV giant Tesla currently dominate. However, investors are asking if this is really a feasible probability over the next 5 years. In Lucid’s first full year of operations in 2022, the company expects to deliver 20,000 vehicles which will generate approximately $2.219 Billion in revenue according to Lucid.
In 2010, Tesla’s first year as a publicly traded company – they delivered 1,500 Tesla Roadsters to customers across 31 countries. The substantial difference in both companies deliveries (first full publicly traded year) is the tailwind of growth and demand for EV’s expected in 2022 compared to 11 years ago. In fact, the CAGR between 2019 and 2027 in terms of Global EV market value is forecasted at roughly 20% according to statistica.
Therefore, a better indicator of Lucid’s success in disrupting market share against Tesla will be the success of the Lucid Air launch. Lucid expects the Lucid Air to take 0.6% of the global EV market share in 2022. It will be crucial for Lucid to deliver on this first market share target, which will establish their name as a true player in the EV luxury market. By capturing marketshare particularly in North America next year, Lucid aims to steal market share off Tesla’s luxury S model.
Morgan Stanley says expectations too high for Lucid Motors stock
Earlier this month, Morgan Stanley analyst Adam Jonas visited Lucid’s vehicle manufacturing plant in Casa Grande, Arizona. The analyst discussed the production of the Lucid Air and plans to deliver the Dream Edition to customers beginning in late October, 2021. Jonas noted this was an important step for the company however has kept an underperform valuation on the stock. The analyst added he expects additional funding will be needed to expand production to Phase 3 according to TheFly. The analysts target represents a 50% downside from the current trading price.
The Bottom Line – Lucid Stock Forecast 2025
In summary, Lucid Motors is entering into an exciting phase of growth for the company with deliveries on the horizon. There is no doubt Lucid Motors is generating serious investor sentiment. This of course is driving further speculation on Lucid Stock Forecast.
As noted above, a key indictor investors will be focusing on is the success of the Lucid Air launch expected later this year. The longer term prospects will also rely on this first step. We will continue to update our viewers on Lucid Motors as we move closer to the companies first delivery.
The information above is not financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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