As the battle for the electric vehicle market heats, more companies are emerging to try to take the crown from Tesla (NASDAQ:TSLA). Multiple competitors are targeting very specific niches in order to take market share away from the EV giant. One company that caught my eye is Lucid Motors (NASDAQ:LCID), which is targeting the extremely lucrative “luxury” market. LCID stock had made quite the impact on the market running up to an all-time high of $60 post-SPAC merger.
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The stock has since dropped down to earth and has been languishing near its support level at $16.50.
However as the company’s first production vehicle moves closer to release, investors may consider a position in what could be the hottest new EV company.
LCID Stock the TSLA Killer?
Anticipation is starting to build up for the Lucid Air, the company’s first luxury sedan. Could this car be the “Tesla” killer we have all been waiting for? All indications say this may very well be. According to the publication Motor Trends, the Lucid Air is “An Absolute Mic Drop” and a legitimate threat to Tesla and other luxury car manufacturers.
The publication got to test drive the 2022 Lucid Air Dream Edition R. The author praised the Air’s handling and its range stating “I assumed the Air Dream Edition R would be decent enough to drive around big sweepers, but about 10 miles into our run up Angeles Crest Highway, I discovered the car enjoyed being manhandled through tight corners. The harder I pushed, the better the Lucid Air got.”
This type of tight handling is absolutely essential for car enthusiasts who will be among Lucid’s first customers.
Apart from the handling, Motor Trends also praised the car’s gorgeous interiors, a slight dig at Tesla. The publication was also able to confirm Lucid’s range advantage over Tesla. According to the Environmental Protection Agency, the Model S has a range rating of 405 miles. These are tested under very specific conditions by the EPA so the actual range is probably slightly less.
On a single casual test drive, Motor Trends calculated that the Lucid Air could go between 475-517 miles. This figure easily bests Tesla’s current range.
The Lucid Air Gets Its Own Event
Lucid Motors is gearing up to make a splashy debut. Hot on the heels of a glowing review by the Motor Trend publication, Lucid is opening its doors to the public. The company recently announced a series of events called Production Preview Week at AMP-1.
These events will take place in late September and will showcase to the press and investors the company’s AMP-1 factory. Guests in the event will get to observe Lucid Air’s production process as well as learn more about the company’s technology.
The AMP-1 is Lucid’s state-of-the-art manufacturing facility completed last December. This facility is a greenfield project dedicated primarily to EV production, the first of its kind in North America. The term “greenfield” means that the factory was constructed from scratch with electric vehicles in mind. This means that Lucid was able to design an ideal setting. This will eventually lead to greater manufacturing efficiencies and more consistent product quality.
This event has the potential to drum up hype and enthusiasm for the company. A successful showing has the potential to send LCID stock much higher. This is similar to Tesla’s own Tesla Day where Elon Musk would present new vehicle features. TSLA stock would surge higher upon a successful event.
Only time will tell if CEO Rawlinson has the same levels of charisma as Elon Musk. However, given what we know of Lucid Air, there is a strong possibility that he will knock it out of the park.
The commercial release of the Lucid Air should be good news for investors. I believe the LCID stock has plenty of upside from current price levels.
On the date of publication, Joseph Nograles 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.
Joseph Nograles is a part-time freelance copywriter focused on the financial industry. He has worked in a wide variety of industries from tech to consulting with one of the “big four.” He has always enjoyed analyzing businesses and has been a CFA charterholder for nearly a decade now.