By Dhirendra Tripathi
Investing.com – Lucid stock (NASDAQ:LCID) rose 3% Thursday after Citi rated it a buy with a potential to hit $57, a 48% appreciation from the current levels.
While not ignoring the risks the company faces, Citi analyst Itay Michaeli said the company has demonstrated leading EV technology “credentials with a best-in-class blend of range, performance, charging dynamics and price.”
According to the analyst, the company is still early to the premium EV market with the launch of its first vehicle, the Air, upcoming.
Lucid aims to produce 20,000 vehicles in 2022 and 50,000 the following year.
The analyst believes the company’s updates on the launch of Air, the build up of manufacturing capabilities, brand awareness and its financial performance compared with prior projections are some factors that could take the stock price to its target.
On the risk side, he believes the company, still being pre-revenue, is yet to “successfully navigate production ramp-ups.”
Over three months ago, the Environmental Protection Agency certified that Lucid’s Air Dream Edition Range of cars outstrips any other in the EV space, including the most popular Tesla (NASDAQ:TSLA).
Lucid’s 19-inch wheel secured a rating of 520 miles on one full charge, making it the longest-range EV yet rated by the body. That title once belonged to Tesla's Model S Long Range Plus.
The company got a subpoena from the SEC on Dec. 3 to furnish documents pertaining to its merger with blank-check firm Churchill Capital.
The SEC request pertains to certain projections and statements surrounding the combination. It said it is cooperating fully with the SEC in its review.