The Lucid Motors IPO debuted on July 26, as Churchill Capital Corp. IV took the posh electric-vehicle chief public in a extremely anticipated IPO. Is Lucid Motors inventory a purchase proper now after the IPO?
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Lucid Motors Inventory IPO
In February, Churchill Capital IV — a special-purpose acquisition firm (SPAC) — introduced a deal to take Lucid Motors public, valuing the corporate at $24 billion. The corporate goes public “to speed up into the subsequent part of our development,” Lucid Motors CEO Peter Rawlinson mentioned.
A SPAC, often known as a blank-check firm, is an alternative choice to a conventional preliminary public providing. These blank-check corporations don’t have any property past money. They commerce on inventory exchanges after which merge with non-public corporations, taking these corporations public.
Lucid Motors inventory started buying and selling on July 26 underneath the ticker image LCID on the Nasdaq.
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Lucid Motors Inventory Elementary Evaluation: The Lucid Air
Lucid Motors is on tempo to start out delivering its Lucid Air — a high-performance, ultraefficient luxurious EV sedan — in Oct. 2021, in accordance with the firm. The corporate expects to roll out its Gravity efficiency luxurious SUV in 2023. The Lucid Air began in manufacturing in late September.
In a slide deck filed with the U.S. Securities and Trade Fee July 13, Lucid Motors touted greater than 10,000 reservations for the Lucid Air, representing $900 million in anticipated gross sales. It claimed the Air beats the Tesla Mannequin S and Amazon-backed EV startup Rivian’s R1T in battery effectivity, which it calls the final word measure of EV expertise. It additionally claims the Air beats luxurious EVs from Jaguar, Porsche and Audi on that metric.
Lucid touts EV expertise it developed in-house. It describes the Lucid Air because the “quickest, longest-range, fastest-charging electrical automotive on the earth,” delivering 500 miles of vary. The Environmental Safety Company hasn’t licensed that vary but. The Air additionally boasts high-end options corresponding to a “glass cockpit.” The Lucid Air options an autonomous driving system utilizing 32 sensors, together with long-distance Lidar, a security expertise that Tesla lengthy prevented.
The primary absolutely loaded Air will value round $160,000, together with federal subsidies. Cheaper variations shall be launched, with a $70,000 model anticipated in 2022, in accordance with the Wall Road Journal.
LCID Inventory Technical Evaluation
LCID inventory is buying and selling about 60% off its highs, because it trades above its 50- and 200-day strains. Shares are forming a cup with deal with with a 28.49 purchase level.
Based on the IBD Inventory Checkup, Lucid Motors inventory reveals a weak 44 out of an ideal 99 IBD Composite Score. The Composite Score helps traders simply measure a inventory’s elementary and technical metrics. Weak IBD Composite Scores are regular for brand spanking new points.
Lucid Motors Inventory Information
On July 23, Lucid Motors shareholders voted to approve the merger of the clean verify firm.
In mid-July, the corporate mentioned it had completed its preproduction part after a sequence of delays. “The testing and validation of Lucid Air is progressing effectively,” CEO Peter Rawlinson mentioned on the decision, in accordance with Bloomberg. “It is on observe for the second half of 2021 begin of manufacturing for buyer deliveries.”
On Sept. 1, the lock-up interval for PIPE (non-public funding in public fairness) traders expired, permitting them to promote shares. The inventory plunged almost 11% in response.
On Sept. 16, the firm mentioned its Lucid Air sedan obtained an EPA Score of 520 miles of vary. The Lucid Air beats the Tesla Mannequin S Lengthy Vary by greater than 100 miles.
On Sept. 29, the firm’s first luxurious Lucid Air sedans rolled off the meeting line in Arizona. Lucid expects reservation holders of Lucid Air Dream Version fashions will start receiving their automobiles in late October. The firm mentioned it has obtained greater than 13,000 reservations for Lucid Air and elevated the deliberate whole manufacturing amount of the Dream Version to 520 automobiles.
On Oct. 21, CEO Peter Rawlinson says it would launch Lucid Air electrical sedans within the Center East and Europe subsequent yr, whereas launching in China in 2023, in accordance with Reuters.
Is Lucid Motors Inventory A Purchase Proper Now?
LCID inventory rallied over 4% Monday. On Sunday, the corporate tweeted an image of a automobile service with six Lucid Air vehicles on their technique to a vacation spot. In late September, the corporate mentioned the primary deliveries had been anticipated in October, so there’s about one week left to meet that promise.
Lucid Motors inventory is a promising long-term EV inventory that’s set to start out deliveries of its first electrical automobile in late Oct. 2021. Shares of Lucid Motors are removed from a correct purchase level, so the inventory isn’t a purchase proper now. Preserve an in depth eye on the inventory to see if it continues to construct the precise aspect of a deep base, which presents a brand new purchase level.
For extra main shares and shares approaching purchase factors, try these IBD Inventory Lists, just like the Shares Close to Purchase Zones. To see the present inventory market development, try IBD’s signature day by day evaluation, The Massive Image.
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