Lucid Motors beats Tesla at their own game.
Lucid Motors is a luxury electric vehicle manufacturer — going public through a SPAC merger with Churchill Capital (NYSE:CCIV) — producing vehicles that don’t compromise on performance. And they’re appealing to a range of customers that Tesla has begun to leave behind.
Their best-in-class technology rivals Tesla’s, and their battery tech especially is impressive. Some of their models boast a 500+ mile range, and not a single model has a range less than 400+ miles. Their most premium model, the Lucid Air Dream’s 1080HP.
What they’re doing is impressive.
When they go public in a merger with Churchill Capital,
Taking Over Where Others Left Off
Tesla(NASDAQ:TSLA) has been the mothership of the EV industry for awhile. In fact, we’ve been bullish on Tesla for so long that we’ve scored our readers 2000%-plus gains on the stock. But sometimes,even great things must come to an end.
For the longest time, EV stocks followed TSLA stock wherever it went. Up or down, all other EV stocks followed suit.
But this is no longer true. Lucid Motors is up 35% over the past month, and Tesla is down 3% over that same stretch of time.
Why is this?
Because it is becoming clear that Lucid Motors is going to provide stiff competition for Tesla, especially in the premium, luxury channel. Where Tesla stands to lose a lot of market share, we think Lucid can step in and dominate.
Recent developments have only strengthened this thesis.
Tesla cancelled it’s Model S Plaid+, its 500-plus mile range version, and the only version capable of rivalling Lucid Motors’s Air Dream Edition in terms of range. This is a big win for Lucid. Their Air Dream stands alone as the best performance EV in the market.
Meanwhile, Tesla released their Model S Plaid and there were no “mic drop” moments. It was all according to plan, which is great news for other companies, but not Tesla, because this means they may be maxing out its underlying tech.
And that certainly isn’t good. That would mean Tesla’s max point is below Lucid’s current max point.
Take a Road Trip With CCIV Stock
It looks like Lucid will be the winner of the luxury EV race, at least for the next few years.
That means CCIV stock will continue to outperform TSLA stock, because Tesla (with a $590 billion market capitalization) is priced to dominate the EV market for the foreseeable future. If they don’t, the stock will fall.
Meanwhile, Lucid Motors (with a $40 billion market capitalization) is priced for some market share gains in the EV market. And if those EV gains are as large as we expect they could be, CCIV stock will power higher.
A game plan for the next six to 12 months? Sell TSLA stock into strength. Buy CCIV stock on weakness.
Over the next three to five years, Lucid’s stock will meaningfully outperform Tesla’s from current levels.
Where Will Lucid Motors Be in Five Years?
In five years, here’s where we see Lucid Motors within the broad context of the EV industry.
For one, they’ll be standing alone as the de facto brand of luxury EVs — above Tesla, Audi and Porsche. They will be in a class of their own in terms of brand and technology.
They’ll also have stores in all the high class malls, like Tesla does today. Those stores will be busier than Tesla’s stores on a regular basis. They’ll be nicer and fancier too.
Lucid Motors will be selling hundreds of thousands of cars a year, at super high price points, with extremely favorable margins. We’re talking a $20+ billion revenue company by 2026, with 20%+ gross margins.
For all intents and purpose, Lucid Motors will be in five years where Tesla was around 2019 or 2020. And by the end of 2020, Tesla was worth $650 billion.
Bottom Line on CCIV Stock
We’re watching CCIV stock outperform TSLA now, but what we’re really looking at is Lucid’s impending superiority in the EV industry in the more distant future.
Tesla cancelled its competing model and is bowing out of the luxury car race. Tesla just made Lucid’s job easier.
If you’re also watching the EV stock battle with us and want to follow our current strategy, keep on the look out for strong points in TSLA stock to sell and dips in CCIV stock to join in on the action.