Why is Lucid stock up today? Potential Tesla challenger
- Lucid Group (LCID +12.6%) continues to rise as positive reviews on its recently delivered electric vehicles arrive.
- The company's luxury electric sedans start at $77,400 and provide drivers with an industry high official EPA range of 520 miles, 100 miles better than the second place Tesla Model S.
- Given the high price tag, the company poses the biggest threat to the Model S, which is Tesla's (NASDAQ:TSLA)most expensive sedan with a starting price of $94,990. Lucid is planning to release its Project Gravity SUV in 2023 which will compete with Tesla's Model X.
- The threat may not affect Tesla too much, though, if Lucid decides to stay at higher price points. Tesla makes the majority of its revenue from its cheaper Model 3 and Y SUVs. In Q3, just 3.8% of Tesla's unit deliveries were from the Model X or S.
- Lucid is following Tesla's model of displaying vehicles in malls and will open its newest retail location at Tysons Corner Center in the Washington, DC, Metro area on Saturday, Nov 6. The EV manufacturer plans to have 20 such locations by the end of 2021.
- Upcoming catalyst: Lucid will report its Q3 2021 results on Monday, Nov. 15 post-market. Analysts will be watching to see what commentary management provides on reservations (13K as of September) and production status.
- Click here to see how Lucid compares to other EV manufacturers.