Lucid Group is my favorite EV stock to hold right now because Lucid Motors produces the best overall electric vehicle in the world.
In fact, LCID is the largest holding in my growth stock portfolio because I truly believe Lucid is like Tesla 2.0 all over again.
Where Will Lucid Motors Be in 5 Years?
Now everybody is wondering where will Lucid Motors stock be in 5 years from now. Whenever I invest in any stock, I aim to take a long term view of the company and see if revenue & earnings will grow positively over time.
In 2027, the entire EV industry will be filled with tons of competition from companies such as Tesla, Rivian, Ford, Toyota, Fisker, and many other smaller EV companies.
But Lucid could become the “Apple Inc of the entire industry” and produce extraordinary gains for long term investors.
In 2027, Lucid Motors could generate over $70 billion in annual revenue with LCID stock trading well over $500 per share.
Lucid Motors Leads the Pack
The Lucid Air is arguably the best EV on the planet right now. It has the longest range out of any luxury EV sedan with 500 miles charging range and starts at a $77,000 price range.
There is no other EV on the planet that comes close to the Lucid Air in terms of quality and luxury by a long shot.
Back in the early 2000’s, Apple released the Apple iPhone and became the most valuable company in the world by producing the highest quality electronics for consumers. I’m hoping Lucid will benefit from the same brand recognition by producing the best EV on the planet.
5 Year Revenue Growth Will Be Insane
Now let’s take a look at the numbers to determine some revenue growth. In Q2 2022, Lucid Motors generated $97.3 million in revenue from 679 deliveries. That’s an average revenue of $143,000 per vehicle.
Management expects to deliver 7,000 EVs in 2022 and let’s assume the company can reach 500,000 EVs produced by 2027 because Lucid Motors CEO said the company will hit 500k annual EVs produced by 2025.
500k deliveries would equal $71.5 billion in annual revenue alone (not including future price increases over time).
It doesn’t make sense to use LCID’s current Price to Sales ratio because the company is still growing.
TSLA stock trades at a 15 P/S ratio, which is a good benchmark for a more mature futuristic company.
If LCID follows in the same footsteps as Tesla then Lucid Motors would have a market cap of $1 trillion by 2027.
Assuming no further dilution, LCID stock would be worth $500 to $600 per share. That’s a 30 to 40x from its current price range.
Is LCID a Good Long-Term Investment?
Lucid stock looks like a solid long term investment if the company continues to innovate and execute. When Tesla was struggling to grow, many investors ignored TSLA stock during its initial growth phase. However, it makes sense to think long term and consider how companies change over the years. Tesla proved that things may be tough in the short term but extremely rewarding over the long run.
I think Lucid Motors is going through the same growth pains but has a fantastic future lying ahead. In just 5 years, Lucid could become the premier EV company in the world. They are 100% focused on the luxury EV market while other companies such as Tesla and Rivian are operating several different businesses at the same time.
That makes LCID stock a great long term investment if you buy LCID shares and hold them for the long run.
Is Lucid Stock Expected to Rise?
LCID stock may have bottom in November 2022 along with the overall NASDAQ market. I do believe the worst of over for Lucid Motors and the company is ramping up production to meet its 7,000 EV production goal in 2022.
Many tech stocks have been oversold in 2022 and I think dip buyers will pick up LCID shares under $20. That means LCID could soar in 2023 as the company scales production and deliveries. As long as deliveries continue to rise, Lucid Motors will increase revenue and send more Lucid Airs into the wild.
How High Can LCID Stock Go?
Lucid Motors could become a trillion-dollar company by 2030 if the company executes on its mission to produce the best EVs on the planet. That would give LCID stock a valuation of around $600 over the long term.
My LCID stock price prediction in 2025 is $125 per share. In the next 5 years, LCID stock has the potential to hit $300 to $400 assuming no stock splits.
What is The Future of Lucid Motors?
Over the next 5 years, Lucid Motors plans to produce more Lucid Airs and a Lucid luxury sedan SUV. The company could exceed over 500k EVs produced and push towards 1 million electric cars produced annually.
The Saudi Arabia factory should be completed and Lucid Motors may start building another factory in China to sell EVs in the world’s largest electric vehicle market.
Things look bright for Lucid Motors but investors should be patience while the company ramps up production. Wall Street ignored Tesla for years until analysts and institutional investors understood why Tesla was way ahead of its competition.
Lucid is way ahead of the luxury car market in terms of design, EV range, and production. Companies such as Mercedes Benz, Porsche, and Lamborghini are playing catchup to Lucid’s forward-thinking business strategy. Even when legacy luxury automakers start producing EVs, it will be difficult for them to outperform Lucid Motors.
Final Words on Lucid Motors
LCID stock is one of the best growth stocks you can buy right now. In 5 years, Lucid Motors will be one of the best companies in the world and LCID shareholders will thank themselves for HODLing LCID shares through tough times.
LCID is my top holding for a reason. If there is one stock I absolutely love right now, it’s LCID!