Bank of America recently stated that Lucid and Rivian have the highest upside between automotive companies. Lucid, Tesla, and Rivian all have very strong futures, however, in the near term, each of these companies' stock performances will have to wait their turn. Most, if not all of the growth stocks have been destroyed recently because of fear of rising rates. With so much market uncertainty we could see some more downside, but shorters will have a tough time keeping Lucid, Tesla and Rivian down for very long!
Let's look at Lucid first. They have untapped potential and the best Battery Technology that we have ever seen. They are just starting their rapid growth and will be at the forefront of both the Electric Vehicle industry as well as the Renewable Energy industry. In 2 years when we look back at this company and see a stock that currently trades today at just under $30, we will see an opportunity for 4-5x our money. I have recently posted an article on why I believe $LCID will hit $100 by the end of 2022. With that said, Lucid is incredibly undervalued and is oversold. That makes for a great next couple months of holding this stock. Lucid is definitely being hit by the overall market, but we could see some major upside for $LCID very soon.
Tesla had their quarterly earning report which they smashed out of the ballpark and they are now down over 9%. Usually Tesla trades negative if they have positive earnings because many trades “Sell the News” which is a trading style that is not going to last, so enjoy it now. Tesla is now trading at its lowest P/E since the huge $TSLA run up. I could see a huge upside for Tesla within the next couple of months that vaults up the entire Electric Vehicle sector.
Rivian recently announced that they have produced just over 1,000 vehicles and are now targeting to produce around 200 this week. That is some major ramping up for the Electric Vehicle company that has seen its stock tank since it went to $175 right after it’s Initial Public Offering. They have fallen off a cliff since then, but that has made a great buying opportunity.
These 3 companies have immense potential and early investors in all these companies will be making a tremendous amount of money. Tesla is still an incredible investment even after it is valued at over $1 Trillion. Lucid Motors could triple within 2020, and Rivian has been beaten down and with Amazon still owning 20% and being a strategic partner, Rivian is not strapped for cash. With these massive growth companies that are both undervalued and could double or triple within days, the best thing to do is just buy the dips and hold your investment. The market will get better and the growth sector will return in a massive way one day.
All three of these companies will survive the market downturn and will outperform most of the market for years to come. Investing in the future does take some patience, but at the end of the day there will be some major volatility on some days that push retail out of the stock. When Amazon was starting out, $AMZN went from $106 to $6 in one year. The investors that bought at $106 and watched their investment crash and burn, would have made so much money if they would have just kept the investment and watched Amazon split 3 times, while now trading at $2,800+. So Patient definitely Pays.
Anthony Donati focuses on electric vehicles and renewable energy companies. He covers Lucid Motors news at Torque News. Please follow him on Twitter at @TheLucidVerse for daily Lucid Motors news. He has a degree in Business Administration with a concentration in Finance. DISCLAIMER: Anthony is a Lucid Motors (LCID) stock holder.