Lucid stock currently sits around $10 and I can’t help but think that buying LCID now could be like buying TSLA shares in 2010.
Buying Lucid Stock Under $10 Could Be Like Buying The Tesla IPO
LCID made its NASDAQ debut on July 21st, 2021 at a price of around $25. Since then, LCID shares have crashed down to its initial SPAC IPO pricing of $10 with a $20 billion market cap.
A lot has changed in nearly 2 years with several doubts surrounding the company in terms of cash burn and a potential buyout from the Saudi PIF.
The good news is that buying LCID stock now could be like buying Tesla stock in 2010. I don’t see another growth stock under $20 with the same upside as Lucid on the entire NASDAQ.
Tesla IPOed at $16 ($1.25 split adjusted) in 2010
A young Elon Musk took Tesla public in 2010 back when the idea of electric cars taking over the planet was laughed about. Tesla shares peaked at around $26 on its first day of trading with $2.2 billion market cap.
It’s been a long journey for Tesla over the last 13 years and TSLA shareholders have done quite well gaining a whopping 15,000% return on their IPO investment.
Many investors would pick Tesla over Lucid stock right now because Tesla earns more annual profit than Ford and GM combined.
However, Lucid is growing faster than Tesla did in its early stages thanks to selling a better and more expensive EV. Lucid could prove the haters wrong and make LCID shareholders rich enough to retire early on their Lucid shares.
Short Sellers Have Driven Down Lucid Stock Prices in the Short Term
Retail investors may look at LCID’s current share price of $10 and call Lucid a poor investment. Nothing could be further from the truth because short selling is the biggest reason why LCID stock keeps going down.
LCID has a 22% short interest that doesn’t reflect the near term growth of the company. Lucid delivered over 4,000 EVs in 2022 plus has plans to sell EVs worldwide this year starting with Europe. The company is also working on expansion in Saudi Arabia and China. China is a big step in the right direction because the Chinese EV market is the largest in the world.
40% of Tesla’s sales comes from China and this could be a big win for Lucid over the next few years.
Big Institutions Have Bought Up Nearly $1.5 billion in LCID Stock
I always say “follow the money” to understand exactly how big institutions feel about a particular stock. Lucid has experienced a surge in institutional buyers over the last 12 months with nearly $1.5 billion in funds following into the stock.
It looks like the smart money is buying up LCID stock while retail investors panic. However, I believe guys like us should think long term because my $125 LCID stock price target for 2025 may come true.
Patience Lucid Shareholders Will Be Rewarded
Lucid continues to win accolades and praise for its award winning Lucid Air electric car. Quality is what separates Lucid from the pack and there is no doubt that Lucid’s excellent product will reward shareholders with market beating returns in the long run.
Buying LCID shares at the initial $10 SPAC pricing is a great bargain that could pay off handsomely in the future.