Lucid Motors can be considered Tesla 2.0 and many investors are wondering if LCID stock will soar in value over the next few years just like Tesla did.
Will Lucid Stock Be Like Tesla?
All signs are pointing to Lucid Group becoming the Next Tesla because Lucid Motors CEO Peter Rawlinson is a former Tesla chief engineer who worked on the Tesla Model S.
Lucid Motors also has several former Tesla employees working in key positions that could help position themselves as the #1 luxury electric car company in the world.
Lucid Motors also charges more per EV than Tesla does, which helps the company grow revenue at a much faster pace. A higher quality electric car may attract a higher net worth individual who is willing to pay more money for outstanding quality and performance.
That makes Lucid Motors similar to Apple while Tesla’s mass production goals mimic Microsoft. If Lucid Motors continues to produce and deliver vehicles then LCID stock could soar to the moon like Tesla did and make many “Lucidnaires”.
Lucid Motors Must Match Tesla’s Insane 10-Year Growth Rate.
Tesla IPOed in 2010 and is up nearly 16,000% over the last 12 years. According to Morningstar, TSLA stock has a 10-year CAGR of 60%, which has outperformed the NASDAQ’s 11% CAGR over the same period.
If Lucid Motors stock grows 60% CAGR over the next 10 years then LCID would be worth $1,319 per share. That’s an impressive 10,800% return for Lucid Motors shareholders.
LCID stock is my favorite millionaire maker stock because the company could achieve these impressive growth rates in the future.
Lucid Motors Is Growing Faster Than Tesla Did in its Early Stages
You cannot compare Lucid Motors directly to Tesla because Tesla had an 11-year head start on Lucid.
However, you can compare Lucid’s 1st year of revenue to Tesla’s 1st year to see if Lucid Motors is growing faster than Tesla did back in 2010.
|Tesla in 2010||Lucid Motors in 2022|
|Revenue||$117 million||$181 million (TTM)|
Lucid Motors began producing vehicles in Q4 2021 and are already ahead of Tesla’s production during its 1st year with 1 additional quarter to go in 2022.
The company plans to scale up production quickly and will greatly outperform Tesla’s 1st year of revenue as a publicly traded company.
Lucid Motors CEO Peter Rawlinson Wants to Fight Climate Change
Tesla CEO Elon Musk didn’t grow Tesla into a massive company by focusing on money. Musk is driven by a strong desire to fight climate change and make the world a better place.
Lucid Motors CEO Peter Rawlinson wants to fight climate change and revealed that Lucid Motors would scale to 500,000 EVs produced annually by 2025. He originally set a goal to produce 500k EVs by 2030 but sped up the timeline because he believes “the planet cannot wait”.
This is a great sign that Rawlinson is driven by a higher calling and isn’t focused solely on money.
IF Lucid Motors wants to be like Tesla then the company must focus on fighting climate change and producing more EVs. Great companies focus on solving problems and challenges, which is why they become valuable businesses in the first place.
Lucid’s Cash Burn Is The Only Problem That Could Stop Them From Being The Next Tesla
As Lucid Motors scales up production, the company loses more money each quarter. Elon Musk said Lucid Motors could run out of cash and go bankrupt if the company cannot control costs.
The good news is that Lucid Motors has over $4 billion in cash on its balance sheet and could become profitable in the next few years.
Tesla experienced the same problem during its early years and almost went bankrupt several times. We’ll have to wait and see how Lucid Motors deals with cash burn and if it becomes a larger issue.
I missed the boat on Tesla back in 2010 just like most investors but will not miss the boat on Lucid Motors this decade.
LCID stock is the largest holding in my growth stock portfolio and I truly believe the company will be like Tesla and become one of the most valuable companies in the world this decade.
As long as Lucid continues producing the best EVs in the world then LCID investors have little to worry about.