Should You Buy Lucid Group Stock While It’s Below $70?

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Dear diary, today I find myself pondering the curious fate of Lucid Group (LCID). It’s been one of those tumultuous rollercoasters, careening between dizzying highs of $35 and the rather unfortunate lows of $16. Yet, among the waves of uncertainty and financial despair, one Wall Street analyst remains like a calm sailor amidst a storm, confidently prophesizing a price target of $70. Naturally, I need to dig into the depths of this theory-dividend hunter’s duty and all that.

3 Reasons this Wall Street analyst adores Lucid Group stock

Let’s take a moment to appreciate the pro – Mickey Legg from Benchmark Company. Picture him confidently brandishing a price target that suggests a nearly 200% upside potential. If only my bank account behaved as daringly! He cites three intriguing reasons for his optimism.

First, he suggests we’ll see electric vehicle sales in the U.S. zooming upward in 2025 and 2026. Now, hold the phone, because this prediction raises eyebrows for all the right reasons. Remember 2023? A sparkling 1.2 million EVs rolled off the lots, a 46% jump, only to see that growth tank to a mere 1.3 million in 2024 – an all-too-modest 7% increase. Add to that, the impending demise of EV tax credits could very well put the brakes on sales beyond 2025, yet Legg remains steadfast in his bullish forecast.

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But Legg’s optimism isn’t purely numbers-driven; he pronounces Lucid’s “advanced technology” and “highly integrated manufacturing capabilities” with a flair that could excite even the most jaded investor. You see, Lucid has been subtly asserting itself as less of a car manufacturer and more of a tech wunderkind. I can almost hear the former CEO: “Imagine, everyone! 20% cars, 80% licensing-who wouldn’t want to be a tech-savvy Ivy League graduate of the auto universe?”

Then there’s the intriguing alliance with Uber Technologies. A whopping deal to provide 20,000 vehicles for the robotaxi division? Now, that’s the kind of futuristic fantasy I would watch on Netflix. Uber’s investment of $300 million into Lucid does lend credibility to this ambitious vision. So while I may not fully subscribe to Legg’s chipper take on EV sales, one cannot deny the appeal of Lucid’s cutting-edge potential.

However, let’s not sugarcoat everything. The huge investment by Saudi Arabia has me whispering sweet nothings of caution. The sovereign wealth fund’s finances have been a lifeline for Lucid, all while intending to gobble up 100,000 vehicles by 2032. Yet, as the major investor, Saudi’s overarching influence might not align with what the everyday investor – like yours truly – desires.

If only the trajectories of nations could always match the trajectories of my stock portfolios! But alas, here we find ourselves in a minefield of conflict between lofty ambitions and the potential for turbulent waters ahead.

Don’t invest in Lucid Group before understanding this challenge

And now, dear reader, for the final piece of the puzzle – the glaring challenge that lurks in the shadows of Lucid Group’s ambitions. You see, clarity seems to be a rare commodity when it comes to launching affordable electric models.

According to my latest market whispers, a staggering 70% of U.S. buyers are searching for a vehicle priced below $50,000. With Lucid not even daring to dip a toe in that pool, they might as well be handing out flyers to a party on Mars. Their anticipated affordable model by 2026? Well, let’s just say I’m cautiously optimistic, but laden with skepticism regarding whether they can put together the necessary financing and infrastructure without pulling off a magic trick. Meanwhile, the likes of Rivian Automotive and Tesla are readying multiple affordable models to swoop in like energetic contestants on a game show.

Herein lies Lucid’s biggest conundrum. Even if sales soar as Legg envisions, if Lucid isn’t equipped with the right models, those sales could very well pass them by like a bus filled with opportunities. Sure, their technology is dazzling, but it’s all for naught without the ticket to the masses. So, while analysts may continue to paint rosy futures, I think I’ll enjoy a little emotional distance on the sidelines for now. Investment is meant to be a gamble, but I prefer my risks to be, shall we say, less acrobatic.

In this dizzying dance with potential and peril, I’ll raise my metaphorical glass to you. 🥂

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2025-10-04 21:02