Many of you reading this are long-term Lucid shareholders despite all of the negative press and media surrounding the upcoming American EV company.
I, too, was extremely cautious when Lucid IPOed as a SPAC back in 2021. Hype sent LCID shares soaring to almost $60 per share until the hype faded and reality replaced greed.
Let’s face it: Lucid lost $1.2 billion in 2022 as the company struggled to scale its deliveries and control costs.
Now, short sellers are spamming the internet with tons of articles claiming the company loses over $300,000 per EV to prevent the inevitable LCID short squeeze from happening.
Lucid isn’t scaling as fast as Nio or Rivian because the production of the Lucid Air requires more attention to detail and careful planning. With decades of experience under his belt, Lucid CEO Peter Rawlinson hopes to create the best-performing electric vehicle on the planet. This is not an easy task.
I’ve dug deep into Lucid’s financials and read dozens of threads on the popular Lucid Owners forum in my spare time. I continue to truly believe that Lucid could create an army of millionaires (aka Lucidnaires) by 2030 if the company executes beautifully.
5 Reasons Lucid Stock Could Create An Army of “Lucidnaires”
1. The World is Shifting from Cars and Trucks to “Smart Vehicles”
The EV shift is happening faster than you think. EV sales growth soared in 2022 and more consumers have considered “going electric” to save money on gas. According to AutomotieDrive, 86% of vehicle sales could be EVs by 2030.
80% of EV owners charge their vehicles overnight at a cheaper cost while you rest. The Lucid Air EV software updates regularly and your Lucid Air gets smarter over time just like Tesla.
It’s only a matter of time until motorists experience the benefits of an electric vehicle and switch to “smart cars” permanently.
2. Lucid EVs are the Fastest and Longest Range EVs on the Planet
Speed kills. The Luid Air Sapphire is the fastest EV on the planet clocking 0 to 60 in less than 2 seconds. Lucid is also the only EV on the market with a 500+ mile range.
Other EV companies and legacy automakers don’t compare to the quality of a Lucid Air just like most smartphone companies cannot compete with the Apple iPhone 15 Max Pro.
3. The PIF Tried to Take Tesla Private at $420 but Now Owns A Majority Stake in Lucid
Lucid’s biggest shareholders, the Saudi PIF, asked Tesla CEO Elon Musk to take Tesla private at $420 pre-split before Tesla joined the S&P 500.
Now, the PIF owns a 60% stake in Lucid as a hedge against its massive $2 trillion market cap Saudi Aramco oil empire.
Don’t underestimate the power of the PIF to help Lucid become one of the best EV companies on the planet.
4. Lucid’s Revenue Is Growing at a 232% CAGR
While Lucid lowered its delivery guidance to 10,000 EVs in 2023, investors should note that Lucid’s cheapest EV, the Lucid RWD, costs $77,000. Lucid can generate more revenue by selling fewer cars than other EV companies.
In just 4 years, Lucid has grown its revenue from $9 million in 2019 to $608 million I 2022. That’s a massive 232 CAGR in just 4 years.
Lucid could hit $1 billion in revenue for the first time and may eclipse $128+ billion in revenue by 2030 if revenue continues to scale quickly.
|Year||Lucid Potential Revenue|
Using a P/S ratio of around 12, Lucid’s market cap could hit $1.4 trillion over the next 7 years. I used a 100% CAGR revenue growth rate that accounts for slowing revenue growth throughout the rest of the decade.
That’s enough revenue growth to help Lucid approach a $1 trillion market cap and create an army of millionaires who invested in Lucid stock during its darkest days as a floundering EV penny stock.
5. Quality > Quantity: Lucid WIll Win Over Customers Once the EV Race Dust Settles
With so many companies pumping out EVs carelessly, I’m guessing quality will beat quantity in the end. Look at how iPhone owners love the built and unique design of Apple’s products. Many competitors try to copy Apple’s design but haven’t been able to match the quality and feel of an iPhone in your hands.
Lucid’s EVs were built to look and feel good with impressive attention to detail. The company cannot scale too quickly because moving too quickly leads to mistakes.
Once every EV company offers a vehicle, motorists will appreciate the quality of a Lucid electric vehicle. That will make all the difference in the long run.
Buy and Hold Lucid Stock to Become a Millionaire
I’m predicting Lucid stock will create a lot of millionaires. All you have to do is buy and hold Lucid stock through the ups and downs. It’s one of my favorite millionare maker stocks to buy and hold.
I’m a proud LCID shareholder and will continue to HODL while ignoring the naysayers.
Nobody got rich following the crowd. I’m holding my LCID until we are all laughing at the bank!