Why Lucid Group Remains a Hidden Gem in the Electric Vehicle Market

Lucid Group is expected to see massive sales growth, with revenue forecast to increase by over 70% in 2023 and another 97% in 2026. The introduction of its new Gravity SUV platform has doubled its lineup and added a more attractive option for buyers. Despite this growth, Lucid stock remains cheap due to its small market capitalization and limited access to capital compared to larger EV makers like Tesla and Rivian.

Lucid Group (NASDAQ: LCID), an electric-vehicle (EV) maker, is expected to see massive sales growth in the coming years. Analysts predict revenue will grow by more than 70% in 2023, with another 97% growth anticipated in 2026 [1]. This impressive forecast is primarily driven by the introduction of its new Gravity SUV platform, which has doubled the company's vehicle lineup and added a more attractive option for buyers [1].

The Gravity SUV platform has significantly contributed to Lucid's near-term growth rate, which is expected to outperform other EV stocks like Rivian (NASDAQ: RIVN) and Tesla (NASDAQ: TSLA) [1]. Furthermore, Lucid is poised to sustain its high growth rates for years to come. In 2026, the automaker expects to start production of three new models, all priced under $50,000, making its vehicles more affordable to millions of new potential buyers [1].

Despite this promising outlook, Lucid stock remains cheap. One of the primary reasons for this is the company's small market capitalization, which limits its access to capital in a capital-intensive industry [1]. Lucid is significantly smaller than Tesla and less than half the size of Rivian on a market-cap basis, making it more challenging for the company to secure the necessary funding for its growth plans [1].

While Lucid has big plans for growth, execution risk is a real concern. Over the past decade alone, at least 30 EV makers have gone under [1]. This underscores the challenges faced by EV manufacturers and the need for careful execution of growth strategies.

In conclusion, Lucid Group's stock appears to be a reasonable bet for patient and aggressive growth investors. However, it is essential to consider the execution risk and the company's smaller size compared to larger EV makers. Investors should do their due diligence and assess the risks and potential rewards before making investment decisions.

References:
[1] https://www.barchart.com/story/news/33304420/think-it-s-too-late-to-buy-lucid-group-here-s-the-biggest-reason-why-there-s-still-time
[2] https://www.nasdaq.com/articles/think-its-too-late-buy-lucid-group-heres-biggest-reason-why-theres-still-time-0
[3] https://finance.yahoo.com/news/think-too-buy-lucid-group-162434519.html