![lucid cciv lucid cciv](https://i.redd.it/hj9dx0yrncd61.jpg)
We can get a decent picture of demand for their vehicles by looking at reservations. There have been no deliveries of its flagship EV. Lucid Motors reminds us of Tesla back in 2010. Now, it’s time to take a leap of faith with another EV maker - Lucid Motors (NYSE: CCIV). They believed in Elon Musk, the talented team of individuals he surrounded himself with and their collective ability to execute on a world-changing vision that would one day reshape the automotive market we thought we knew.Ī decade later, investing in Tesla’s team and its dream has paid off. Rather, investors were investing in Tesla because of its people and what they saw it someday becoming. Tesla had yet to truly take the auto world by storm. Investing in the FutureĬlearly, when it came to investing in Tesla in 2010, investors weren’t investing in an enormous EV giant. If you had invested in the beginning - if you’d have seen Tesla’s determination and vision rather than the numbers that supposedly described the company’s success - then you’d be sitting with some extremely impressive gains.Īnd remember, Tesla split its shares 5-for-1 in 2020, meaning that if you bought TSLA stock at its stock-split adjusted price of $3.80 per share in 2010, it would be worth around $$644 currently. A strategic thinker and fundamental public equity investor, Joanna leverages over 20 years of experience on Wall Street covering various segments of the Technology, Media, and Telecom sectors at several global investment banks, including Mizuho Securities and Canaccord Genuity.Back to 2021, we now have TSLA stock costing several hundred dollars a pop. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines. On the date of publication, Joanna Makris did not have (either directly or indirectly) any positions in the securities mentioned in this article. Your comments and feedback are always welcome. As such, I continue to recommend selling CCIV shares. But, for now, there is plenty of risk to CCIV shares as investors begin to more closely scrutinize Lucid’s manufacturing ramp. I expect CCIV to move sideways into the IPO transaction. Getting the manufacturing process right (and delivering products on time) will take more than cool design renderings. That said, it’s too early to take a position in CCIV at these levels.
![lucid cciv lucid cciv](https://i.redd.it/4hk4kswtyac61.jpg)
With EVs well-positioned to cannibalize a $5 trillion automobile market, there’s very little debate over long-term industry growth. Plenty of Time to Buy After CCIV Stock Resets Ultimately, none of this even matters considering Lucid still can’t commit to a production output of 22,000 EVs for next year. This is especially true considering that most Americans only drive about 30 miles per day on average.ĭemand for Tesla’s vehicles continues to accelerate with only a moderate range of approximately 275 to 300 miles per charge. Meanwhile, social chatter from retail investor bulls remains obsessed with the idea that the sudden cancellation of Tesla’s uber premium Model S Plaid+ edition is a big coup because it’s now the only sedan on the market with a range of more than 500 miles on a single charge. Pumpers Still Peddling Stale Drama Over Plaid+ Ī mix of bubble-like valuation, momentum and high short interest, at 26% of float - I think this is the end of the recent momentum rally in CCIV stock. Both of these companies are currently under SEC investigation. At a quick glance, the growing list of soon-to-be out-of-businesses includes once-popular EV truckmakers Lordstown Motors (NASDAQ: RIDE) and Nikola (NASDAQ: NKLA). Lucid also comes to market amid a backdrop of overpromising and under-delivering EV SPACs. After all, Lucid hasn’t affirmed previous production guidance for next year. I nvestors who may be spooked about CCIV’s lofty valuation should also remember that there’s no upcoming catalyst for the shares other than the transaction itself. As mentioned earlier, at these prices, Lucid would be valued at the same market capitalization as Tesla in early 2017. Lucid’s traditional auto counterparts Ford (NYSE: F) and General Motors (NYSE: GM) are worth $62 billion and $93 billion, respectively. But that’s comparing one pre-revenue, pre-IPO company to another pre-revenue, pre-IPO company. Compared to the $70 billion figure suggested for Rivian Automotive, Lucid looks like a steal. CCIV Stock: Steep Valuation Shatters the Momentum RallyĬCIV shareholders will have to decide for themselves whether a pre-production EV manufacturer garnering a $38 billion valuation is really worth it.