Over the past quarter, Lucid Motors have cemented their name in the luxury EV space after completing a reverse merger with CCIV. The merger gained serious investor momentum, with the CCIV ticker reaching heights of $64.86 during the 2020 SPAC boom. Now as a combined 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 for 2025 and beyond.
Why has Lucid Stock gained so much attention?
A unique aspect of Lucid Motors and their management is that they have always set out to take on the Goliath EV maker Tesla. Even at the very top, CEO and Founder, Rawlinson spent time as an engineering executive at Tesla prior to starting the Lucid Motors enterprise. More recently, Rawlinson highlighted that both Tesla and Lucid make their Electric Vehicles from scratch, down to the battery packs, software and even the transmissions.
Investors have been waiting for an Electric Vehicle competitor that could potentially strip away market share from the likes of Tesla, and some investors believe Lucid has what it takes. One of the reasons why Lucid’s vehicles have become so popular comes down to the performance. The Lucid Air Dream Edition received an Environmental Protection Agency-rated range of 520 miles. This range hands down beats the Tesla S Long Range Model range by 108 Miles. This makes it the longest-range EV ever rated by the agency to date.
Lucid Motors forecast 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 forecasted deliveries for 2025 are estimated at 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 year-on-year is still strong according to the company. The Lucid Gravity SUV model will do the heavy lifting in 2025 according to the company. Lucid forecast Gravity sales to account for 63% of total revenue in 2025.
Lucid will target a potential market worth $733.2 billion by 2026
The company 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. The tailwinds over the next 5-10 years will be driven by the adoption of EV’s, which is going to have a direct impact on the Lucid Stock Forecast.
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 the companies estimates. Michael Klein Chairman and CEO of CCIV noted prior to the SPAC merger that he 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.
“We see significant demand for the award-winning Lucid Air, with accelerating reservations as we ramp production at our factory in Arizona. We remain confident in our ability to achieve 20,000 units in 2022. This target is not without risk given ongoing challenges facing the automotive industry, with global disruptions to supply chains and logistics. We are taking steps to mitigate these challenges, however, and look forward to the launch of the Grand Touring, Touring, and Pure versions of Lucid Air through 2022.”Peter Rawlinson noted in Q3 earnings release
How does this compare to Tesla’s beginning?
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 forecasted CAGR between 2019 and 2027 in terms of Global EV market value is 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.
Bank of America analyst doubles Lucid Stock Price target
On November 10, Bank of America analyst John Murphy raised the firm’s price target on Lucid Stock to $60 from $30 while maintaining a Buy rating on the stock. The analyst noted to investors that there is a “notable valuation discrepancy” between the EV auto-makers and their ability to raise low-cost capital. Murphy added that both Tesla (NASDAQ:TSLA) and Lucid Motors (NASDAQ:LCID) are viewed as very likely to be able to raise low cost capital. The Bank of America’s valuation is currently 9% higher than Lucid’s current trading price and is 33% higher than the average valuation.
The Bottom Line – Lucid Stock Forecast 2025
In summary, Lucid Motors is entering into an exciting phase of growth for the company with deliveries now a reality. There is no doubt Lucid Motors will continue to challenge the likes of Tesla in the Luxury EV sub-market, especially following the successful launch of the Lucid Air.
As noted above, a key indictor investors will be focusing on is the success of the Lucid Air model in the North American market over the next 12-18 months. Lastly, we will continue to update our viewers on the Lucid Stock Forecast 2025 as we move closer to the companies first revenue generating quarter.
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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