[Editor’s note: “Where Will Lucid Motors Be in 5 Years?” was previously published in June 2021. It has since been updated to include the most relevant information available.]
Lucid Engines (LCID) is one of my favorite EV stocks in the game. In fact, I’ve been bullish on this company for a while.
And the best part? It continues to prove itself – and why we should all be fans of stock LCID.
You’re here (TSLA) has been the industry leader for years. Indeed, we’ve been bullish on Tesla for so long that we’ve marked our readers over 2,000% gains in the stock. But sometimes, even great things must come to an end.
Edmunds automotive experts recently put the two electric vehicle manufacturers to the test. And by comparing Lucid’s Air Dream Edition to Tesla’s Model S Plaid, they proved that the two can go hand in hand.
The two models are related in terms of price and value, interior and technology. And in fact, Lucid has proven its reach and performance to be superior. Although the Model S ultimately beat the newcomer, it was only by an incredibly slim margin. According to Edmunds:
“The Lucid Air is a laudable first effort from a new automaker, thanks in large part to its Tesla-thumping range, otherworldly acceleration and head-turning exterior design. For now, the Model S holds a slight edge overall, but if Lucid can overcome its teething troubles, it just might end… Tesla’s reign.
Relative newcomer Lucid gives titan Tesla a hard time. And that’s just the beginning.
Pick up where others left off
For years, electric vehicle stocks have followed TSLA everywhere they go. Up or down, every other EV stock followed suit.
But that’s no longer true. It becomes clear that Lucid Motors offers fierce competition to Tesla, especially in the high-end luxury segment. Where Tesla stands to lose a lot of market share, we think Lucid can step in and dominate.
And developments in the industry have only reinforced this thesis.
Tesla has canceled its Model S Plaid+, its version with a range of over 500 miles and the only version capable of competing with Lucid Motors’ Air Dream Edition in terms of range. This is a big win for Lucid. Its Air Dream is the most efficient electric vehicle on the market.
And when Tesla released its Model S Plaid, there were no “mic drop” moments. Everything was according to plan. And that’s great news for other companies, but not for Tesla. This means it can maximize its underlying technology.
This would mean Tesla’s maximum point is lower than Lucid’s. And that gives the startup plenty of room to take the lead in the industry.
Take a road trip with LCID Stock
It looks like Lucid will be the winner of the luxury electric vehicle race, at least for the next few years.
This means that LCID stocks will outperform TSLA. With a market capitalization of $711 billion, Tesla is expected to dominate the electric vehicle market for the foreseeable future. If not, the stock will fall.
Meanwhile, with a market capitalization of just $22.8 billion, Lucid is valued for some market share gains in the electric vehicle industry. And if those gains are as big as expected, the stock LCID will be much higher.
A game plan for the next 6 to 12 months? Sell TSLA shares in force. Buy LCID stock on weakness.
Over the next three to five years, Lucid stock will significantly outperform TSLA from current levels.
Where will Lucid Motors be in five years?
Five years from now, here’s where we see Lucid Motors in the broader context of the electric vehicle industry.
On the one hand, it will stand alone as a de facto luxury electric vehicle brand – above Tesla, Audi and Porsche (POAHY). In terms of brand and technology, it will be in a class of its own.
It will also have stores in all high-end malls, like Tesla does today. These stores will be busier than those of Tesla. And they will also be more beautiful and chic.
Lucid Motors will sell hundreds of thousands of cars a year, at very high prices, with extremely favorable margins. We’re talking about a company with more than $20 billion in revenue by 2026, with gross margins of more than 20%.
For all intents and purposes, five years from now, Lucid will be where Tesla was around 2019 or 2020. And at the end of 2020, Tesla was worth $650 billion.
The Last Word on Lucid
Of course, especially given the ongoing market turmoil, we have our eye on LCID and TSLA stock prices. now. But what we’re really looking for is Lucid’s impending superiority in the EV industry in the more distant future.
Tesla has canceled its competing model and appears to be pulling out of the luxury car race. And that makes Lucid’s job much easier.
But the stock LCID isn’t the only one on my radar.
In fact, there’s a tiny $3 tech stock that I think could be the most attractive 12-month investment opportunity on the market today.
See; the largest company in the world – Apple (AAPL) – is about to enter the EV game. They’ve been working on a super-secret “Apple Car” project since 2015. And late last year, the company reportedly increased its investment in the project to speed up its development schedule.
The implication? Apple will likely launch its own electric vehicle within the next two years.
Judging by the success of the iPhone, iPad, Mac and Apple Watch, it seems very likely that the Apple Car will be a huge hit. It even seems possible that this car will dethrone Tesla as the best-selling electric vehicle on the market.
If so, the Apple Car could be bigger than the iPhone, iPad, Mac, and Apple Watch combined.
And the $3 stock I’m talking about is – in my analysis – positioned to secure a partnership with Apple to deliver a critical piece of technology to power the Apple car.
If that sounds like a big deal, it’s because it is. My modeling suggests that this small stock could increase 40 times over the next few years.
So… what are you waiting for? This is perhaps the most exciting investment opportunity in the market today.
As of the date of publication, Luke Lango had (neither directly nor indirectly) any position in the securities mentioned in this article.