Tesla profits weaken the electric car market
One piece of the puzzle is Tesla’s latest Earning Call.
Tesla posted record profits of over $17 billion in cash and is still far ahead of its closest competitor. Unfortunately, investors in all of the electric car companies were negative after the Tesla report. All three largest electric vehicle operators, Lucid, Rivian and Tesla, fell 10% after Tesla’s quarterly earnings report. Some analysts were upset about Tesla’s inability to make plans for a $25,000 car in the near term, and the fact that the Cybertruck was behind schedule.
Here’s Why $TSLA, $RIVN, and $LCID Prices Dropped 10% in One Day: Lucid, Tesla, and Rivian Drop More Than 10% Today: What Happened?
How Lucid Can Benefit from a $25,000 Tesla Model and Cybertruck Delays?
Lucid has long stated that they plan to achieve a cheaper car in the future due to their battery technology and the electric motor being cheaper to produce than their competitor engines. Since Lucid makes their car entirely in-house, they think they’re one of the frontrunners to create a $25,000 car. Lucid and Tesla could make a car cheaper than their competitors because they make their entire product in-house.
Moreover, only two electric car companies have achieved this, namely Tesla and Lucid. The electric car race is a technology race and the companies with the best technology will survive and thrive. This is very important to Lucid and they see it as a huge advantage over the competition and any electric vehicle that starts trying to get into this already crowded market.
Lucid . Near Term Triggers
There are two catalysts coming that can cause the price of an LCID to rise as quickly as the stock is falling. The first is 13F which investors should have within a week or two. This will allow investors to see if the Public Investment Fund of Saudi Arabia has bought more shares in Lucid or if they have sold some of their positions. In addition, he showed investors what institutions are doing with Lucid stock. Several Lucid accounts like my Twitter account @TheLucidVerse noticed some institutional investment during these big dips and even before the big dips started. The Lucid CEO bought more $LCID recently, right before the big drops on Thursday and Friday.
The next big catalyst is the fourth quarter delivery numbers. The most likely date for this to be announced is February 21 during a Lucid Motors earnings call. I’m expecting some pretty heavy volatility before the earning call given how important it is to get deliveries done for Lucid in the near term. But the delivery numbers don’t change the fact that Lucid is expanding rapidly and even going to European marketing, Canada and Asia very soon. In addition to starting car sales in the Middle East in 2022. This is a huge year for Lucid, but all indications are pointing to a very successful year for the electric car company.
My final thoughts
Lucid Motors stock’s massive downtrend won’t last long, and for long-term investors, this is just a pullback and a great buying opportunity. If you have a time horizon of 6-12 months, Lucid will definitely exceed the $50 range which indicates almost 100% profit in a very short period of time. On longer-term time horizons, Lucid should reach the $100 mark by the end of 2022. And I explained why here: $LCID to $100 by 2022. Lucid could be back in the mid-$30 next week and Lucid investors won’t Really be very surprised. I recommend keeping, if you have cash on hand, buy the dips and just remember why Lucid Motors is the next big auto giant, as well as the technology and renewable energy leader.
If you thought this article was helpful and would like to learn more about Lucid Motors, check out these articles, here’s what Lucid Motors is expected to achieve by 2027 or could crown Lucid as an Apple car maker.
Image source: Lucid Motors Media and Torque News.
Anthony Donati focuses on electric vehicles and renewable energy companies. He covers Lucid Motors at Torque News. Please follow him on Twitter at Tweet embed For daily Lucid Motors news and subscribe to LucidVerse on YouTube. He has a degree in Business Administration with a major in Finance. Disclaimer: Anthony is the shareholder of Lucid Motors (LCID).