By Michael Elkins
Shares of Lucid Group (NASDAQ 🙂 rose 3.63% in pre-market trading Tuesday after Cantor Fitzgerald began coverage of the luxury electric car company with an overweight rating and a $23 price target.
An analyst at Cantor Fitzgerald wrote in the note, “Lucid is a technology and automotive company that designs, engineers and builds luxury electric cars, electric trains and battery systems that it sells online or through retail studios. We believe LCID’s premium and luxury vehicles offer greater efficiency, longer range, and faster charging.” , and more space compared to its peers.”
Lucid Air currently offers an industry-leading range of up to 520 miles on a single charge. This range is an important difference to other electric vehicles and is enabled by the efficient and powerful powertrain that Lucid develops and builds in-house. The Lucid vehicles also come with a “wunderbox” technology system to boost ultra-fast, bi-directional charging over 900V, capable of charging 300 miles in about 22 minutes.
The company also has a fairly large commitment from the government of Saudi Arabia to sell “up to 100,000 vehicles” over a 10-year period. The agreement, announced on April 26 this year, includes an initial commitment to purchase 50,000 vehicles and an option to purchase up to 50,000 additional vehicles. Vehicle deliveries are expected to begin no later than the second quarter of 23, and initial orders are expected to range from 1,000 to 2,000 vehicles per year and rise to 4,000 to 7,000 starting in 2025.
The analyst wrote in his note that he believes this agreement is “meaningful” and will help LCID increase production quickly.