The positive news around deliveries and the acceleration in new reservations has driven Lucid Group (LCID) stock higher. Shares of this luxury EV maker have soared 172% in three months, outpacing the Nasdaq composite index by a significant margin.
During the Q3 conference call, Lucid announced that it began delivering vehicles to customers and is slated to deliver an increased number of vehicles in November and December. Furthermore, the company is witnessing an acceleration in new reservations, which have increased beyond the 17,000 mark.
These positive developments have led investors to accumulate Lucid stock. Per TipRanks’ Stock Investors tool, investors currently have a very positive outlook on Lucid Group. The data shows that 14.7% of investors holding portfolios on TipRanks have increased their exposure to Lucid stock in the last 30 days.
What’s Next for Lucid Stock?
Lucid plans to boost its direct-to-consumer channel sales with the continued expansion of its retail and service network in the U.S., Canada, EMEA (Europe and the Middle East), and China.
Lucid CEO Peter Rawlinson said that the company is planning to enter EMEA in 2022 and expects to benefit from the “untapped market demand in these regions.”
As current reservations surpassed 17,000, Rawlinson remained optimistic of achieving 20,000 units in 2022. However, he cautioned that ongoing supply-chain challenges could play spoilsport.
Overall, favorable government policies, increased demand, accelerating reservations, and a ramp-up in production augur well for future growth. Further, Lucid strengthened its balance sheet to fund its growth and ended Q3 with $4.8 billion in cash.
Wall Street’s Take
Owing to the steep rise in Lucid’s stock price, Wall Street maintains a cautiously optimistic outlook. On TipRanks, Wall Street analysts maintain a Moderate Buy consensus rating based on 2 Buys and 1 Sell.
Meanwhile, Lucid scores an 8 out of 10 from TipRanks’ Smart Score rating system, implying that Lucid stock could outpace market averages.
The average Lucid Group price target of $44.33 implies 8.4% downside potential to current levels.
Disclosure: On the date of publication, Amit Singh had no position in any of the companies discussed in this article.
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