Lucid's Expanding Manufacturing Drives LCID Head-To-Head With Tesla

Lucid has experienced a significant decline of 95% from its all-time high, prompting the question: should one invest in Lucid or the formidable Tesla?

Amidst a series of unfavorable news, Lucid's stock has plummeted from its ATH of nearly $60 to $3.47 at the time of writing. In contrast, Tesla, once as low as $1.60 a few years ago, has seen a remarkable 12000% increase, currently trading at $193.20.

While various electric vehicle (EV) stocks have lagged due to slowing consumer spending and subdued demand, the downturn presents an opportunity for investors to consider entering the market. Lucid Group (NASDAQ: LCID) stands out as a significant underdog, trading 95% below its all-time high. Tesla, too, has experienced a considerable drop from its recent peak, now valued at less than 50% of its high at $1.3 trillion.

The decision between the two giants is challenging.

Newton's laws suggest that what goes up must come down, and conversely, what is down will eventually rise. In my opinion, Lucid is the more promising choice at $3.47, with substantial upside potential. Less than two years ago, Lucid had no tangible assets; now, its AMP1 facility in Arizona is a 3.8 million sqft structure, 75% complete, poised for mass production of the highly anticipated Gravity model. In fact, Lucid's CEO spent most of his recent time at the AMP1 facility to aid its production. The recent progress indicates a strong trajectory for Lucid, and my logic leads me to believe it will not linger at its all-time low prices but will soar soon.

Considering a potential fivefold increase, reaching $15 per share and a $34 billion market cap seems more attainable for Lucid compared to Tesla's $950 per share or a $3 trillion market cap.

While I am not a financial adviser, my extensive research and dedication to Lucid since the CCIV days have solidified my position as a long-term investor. Despite being unaffiliated with Lucid, my rock-solid conviction in the company stems from its growth prospects and advancements in the EV industry.

In summary, my bullish stance on LCID is driven by its expanding manufacturing capabilities, impressive growth estimates, and a diverse vehicle portfolio.

Loc Trang is an automotive expert and currently a bullish fan of Lucid Motors. He is the administrator of Lucid Motors Investors and Lucid Owners Club groups among others on Facebook and covers news and opinion on Lucid Motors. You can follow him on X at Logan-T for more.