Is it time to buy LCID shares?
- Lucid Motors (LCID) shares rise on Wednesday as the CEO speaks.
- Lucid CEO says the company is on track to meet 2022 production targets.
- LCID stock exceeds 7% as retail traders pile up.
Lucid Motors (LCID) stock surged on Thursday as traders piled in the name after some bullish comments from CEO Peter Rawlinson. While comments were upbeat, the reaction during the session may have disappointed some. LCID stock actually climbed to $ 28.39 before things calmed down slightly, and it leveled off to close at $ 26.28. Still a strong performance, but this drop in the close actually produced a red candle, which we would rather not have in the chart.
Key figures of Lucid Motors
|Market capitalization||$ 39.7 billion|
|Prize / earnings|
|Price / Sales|
|Price / Reservation||3.4|
|Enterprise value||$ 7.5 billion|
|The net margin|
|52 week high||$ 64.86|
|52 week low||$ 9.6|
|Wall Street average rating and target price||Buy $ 21|
Lucid Motors Stock News (LCID)
Lucid hosted an event at its Casa Grande, Arizona, plant this week, and analysts seem impressed. The momentum started earlier this month with Bank of America posting a bullish note on the stock with a price target of $ 30. To this was added the CFRA which increased its price target for Lucid from $ 10 to $ 35. Citi also began coverage in September with a buy rating and a price target of $ 38. So for, so bullish!
The event at Casa Grande was aimed at analysts, investors and the media. CEO Peter Rawlinson told reporters at the event that production is on track to meet targets for 2022 and 2023 and is aiming to deliver 577 vehicles this year. “The record is correct until the end of next year, so we won’t wait until the end of next year to raise funds,” added the CEO. In line with recent comments from Tesla CEO (TSLA) Elon Musk Peter Rawlinson said he expects the chip shortage to decrease within a year and the company is taking action to address the supply issues. Apparently, Lucid vehicle road tests were available at the event, and these went well, according to online reports. Previously, Lucid (LCID) said deliveries were due to start in October and had more than 13,000 orders for Lucid Air. The Lucid Air Dream Edition received U.S. government certification with a range of 520 miles on September 16, making it the longest range in the electric vehicle industry, with Lucid claiming the sedan is the longest range allowed by the Environmental Protection Agency (EPA) so far.
Lucid Motors Stock Forecast (LCID)
Thursday’s strong move was actually stronger until there was selling pressure on the stock late in the session. We would like to see the long term trendline broken today as this will break Thursday’s high and put an end to fears of a potential double top. Momentum is now high in the stock, so we expect this to continue with the mentions on social media spikes, see Refinitiv’s chart below.
From the daily chart below, Lucid (LCID) stock still has volume headwinds with high volume profile bars and a Volume Weighted Average Price (VWAP) at $ 26.27. This is the highest volume average price since the stock was launched. Once above $ 28.50 the volume drops, meaning the gains should be easier.
FXStreet view: Bullish above $ 25, the 9-day moving average.
FXStreet Ideas: Buy the downside potential at $ 22.20 as there is a lot of volume here. Always use stops.