how to invest in lucid motors

How To Invest In Lucid Motors (Future of Modern Cars)

Lucid Motors is an EV startup company that also supplies batteries to the Formula E racing series. Based in Silicon Valley, it is headed up by Peter Rawlinson, the former chief engineer of the Tesla Model S. Its first model is the Air sedan; an SUV alternative called the Gravity is expected to follow.

Lucid is so much more than an automotive company. 

How To Invest In Lucid Motors
How To Invest In Lucid Motors

They are a technology company that makes an unbelievable product that uses an electric motor that has turned heads in the automotive industry. Lucid can also make a ton of money in both the renewable energy industry and by licensing out their battery technology.

Lucid Motors remains one of few promising startups car company racing to dominate the trying world of electric vehicles  but that doesn’t mean the company is exempt from the many challenges hobbling today’s auto industry.

 Lucid undergoing a learning curve as it ramps up production. Unlike many other nascent players that have floundered under intense capital expenditures and manufacturing challenges, the startup in Newark, California, is so far holding its own against the likes of Rivian but CEO Peter Rawlinson has his sights aimed quite a bit higher than that.

There is a lot going for Lucid right now for Lucid Motors. The company went public last year, pushed its first cars off assembly lines, and hit a major EPA-range milestone on its flagship vehicle. It’s started making deliveries and continues to gain traction.

Below, you can read more about why you need to invest in Lucid Motors, its performance against other industry contenders, and its recent successes and SPAC deal from the list of the contents. Still, the startup isn’t exempt from the challenges facing a changing industry, you can read more on that, too here

Why Should You Invest in Lucid car?

The major reason why you must consider investing in Lucid motors a part of your portfolio diversification is that the company’s largest shareholder has agreed to buy 100,000 of its electric vehicles over the next decade.

The government of Saudi Arabia, which is connected to the kingdom’s Public Investment Fund that owns 61% of Lucid, has made an initial commitment to buy 50,000 of Lucid’s EV with an option to purchase an additional 50,000 vehicles over that same 10-year time frame, according to an announcement Tuesday. Lucid shares popped 5% on the news in after-market trading. 

The pledge includes the Lucid Air, a luxury sedan that launched last year, as well as future models such as the upcoming Gravity SUV. The vehicles will come from Lucid’s factory in Arizona and later from a future assembly plant in Saudi Arabia. The EV sales agreement is part of the Saudi kingdom’s Vision 2030 plan, which seeks to diversify its economy away from fossil fuels.

Saudi Arabia’s Public Investment Fund, or PIF, invested $1 billion into Lucid Motors in 2018 when it was still a privately held company. The investment agreement came just six weeks after Tesla CEO Elon Musk tweeted that he was considering taking Tesla private at $420 a share and had secured the proper funding to make the leap. Musk suggested at the time that Saudi’s wealth fund was interested in backing the company’s move from public to private.

The investment came at a crucial moment for Lucid, which was struggling to raise the funds needed to produce the Lucid Air. PIF held onto its investment when Lucid became a publicly traded company via a merger with a special purpose acquisition company. Today, PIF holds 1,015,252,523 shares of Lucid.

While agreements with a decades-long timeline can fail to provide an immediate sales boost, it does appear that in this case the purchases will begin this year. The order quantity is expected to range from 1,000 to 2,000 vehicles annually and increase to between 4,000 and 7,000 vehicles annually starting in 2025. The deliveries will begin no later than the second quarter of 2023.

It’s unclear exactly what the kingdom will pay for Lucid’s vehicles. However, legal jargon tucked into the announcement indicates per a TechCrunch analysis of the language that the kingdom will get the cheaper price when comparing MSRP in the U.S. to MSRP in Saudi Arabia because Lucid has not yet established an MSRP in the Kingdom.

How to Buy Lucid Motors (LCID) Stock

  1. Find a Broker

To invest in Lucid Motors, you need to start by opening an account with a broker. There are hundreds of brokers and investment apps available, so it’s worth looking for a broker that offers low account minimums and minimal fees.

Depending on your brokerage platform, you can usually choose between several account options. If you’re focused on long-term retirement savings, you may want to consider opening an individual retirement account (IRA) to take advantage of its valuable tax benefits. For shorter-term goals, you could open a taxable brokerage account.

  1. Research Lucid Motors’ Financials

Investing in a single company can be risky, so do your homework to ensure you’re making a sound decision.

Lucid Motors is a publicly-traded company, so it is required to file its financial reports with the U.S. Securities and Exchange Commission (SEC). Potential investors can view those documents, as well as the company’s investor presentations and press releases, on Lucid Motors’ investor relations site.

  1. Choose an Investment Strategy

When you’re ready to invest, think about how much money you have on hand to put into stocks. The amount you want to invest is dependent on a variety of factors, including the status of your emergency fund, your other investments and the price of your selected stock.

Lump sum investing makes sense if you expect a stock to perform very well and you want to lock in its current price. Dollar cost averaging is a better choice for longer-term investments since it helps reduce your level of risk.

  1. Place an Order

Once you’ve opened an account and have decided how much to invest, you can buy your first shares of Lucid Motors. To place an order, enter your broker’s trading platform and type in Lucid Motors’ ticker symbol, LCID. Enter how many shares you want to purchase or the amount of money you want to invest, and then select the type of order you want to place.

There are multiple order types, but the most common are market and limit orders. With a market order, the order goes through at the current price during trading hours. Limit orders are processed only when the stock reaches a certain price that you specify when you place the order. Limit orders are a good idea if you expect the stock to drop in the near future and you want to buy shares as soon as the price decreases.

  1. Have a Plan to Sell

Regardless of your investment goals, there will likely be a time when you need to sell your shares of Lucid Motors.

To sell your stock, enter the broker’s trading platform and type in the ticker symbol and the amount you want to sell or the dollar amount. As with buy orders, you can decide to sell your shares immediately at the current price, or only sell once the stock reaches a certain price. Learn more here

How to Leverage Your Investment to Generate Income with Lucid Motors

Lucid Motors is publicly traded on the NASDAQ Exchange under the symbol LCID. The company trades shares of common stock with no special restrictions on trading or ownership. Individual investors can purchase this through any brokerage that can access the NASDAQ Exchange. You can buy shares either by contacting your broker directly and placing a purchase order or by logging on to an online trading platform and placing a purchase order yourself.

As a relatively high-volume stock on a major exchange, trade orders for Lucid Motors stock do not come with any special risks or restrictions. Price information should generally reflect the current state of the market at any given time, subject to the accuracy and speed of your stock ticker.

There are a few notes of concerns to an investor while  planning to leverage investments with lucid motors. 

Note 1: whenever a company goes public through a SPAC as opposed to an initial public offering it sometimes raises a red flag. The SPAC process allows firms to skip the expensive and time-consuming process of a formal IPO. However that expense and time is spent going through the extensive regulatory procedures that the SEC requires of any newcomer to the public stock exchanges. By going public through a SPAC, Lucid avoided a lot of oversight and investor disclosures.

Note 2: Lucid did cut its production outlook for 2022 in half, down from an estimated 22,000 deliveries to 12,000. This raises questions about cash flow, technology and productive capacity. Now, once again, this might be nothing more than a new business model ironing out a new product, or it might reveal potential investor concerns.

Note 3:Lucid’s electric vehicles are a new product in an emerging industry and that always comes with risks as well as opportunities. Investors should understand that by investing in Lucid they’re taking a chance in an unproven market. Electric vehicles might come into their own as they seem poised to do, or another technology might disrupt them altogether. Lucid might become a major player in this market, or it might lose to a better product in the long run. The risks and potential rewards of buying individual stocks are magnified whenever we’re talking about new technologies.

What are the Potential Benefits of Owning a Lucid Motor?

Bi-directional charging

One standout feature of the forthcoming Lucid Air sedan is planned support for bi-directional charging, which will facilitate vehicle-to-vehicle (V2V) charging and vehicle-to-grid (V2G) charging.

Typically, when an EV runs out of juice, you have to tow it to the nearest charger since there isn’t a practical way to bring energy to the car. Unlike a plastic gas canister, EV batteries often weigh around 1,000 pounds. Being able to charge an EV off another EV can potentially offer a more convenient solution in an emergency situation.

During a power outage, a Lucid Air owner will soon be able to power their entire home using the vehicle’s high-voltage battery pack. The feature is facilitated by a proprietary technology that Lucid calls a Wunderbox, the onboard charging unit.

Higher efficiency

Few areas are as critical to an EV as efficiency, usually measured either by watt hours per mile (Wh/mi) or miles per kilowatt hour (mi/kWh). Everything from charging speed to estimated range hinges on this critical metric. The greater the efficiency, the longer range the vehicle will have and the more miles that it can add while charging.

Rawlinson has noted that consumers really just care about the functionality of how much range they can add over some unit of time, not how many kWh they are putting into their car. Lucid says that the Air can achieve over 4.5 mi/kWh, compared to around 4 mi/kWh for the Tesla Model S. Other rivals are below 3 mi/kWh.

A smaller, more powerful drive unit

Lucid has also made impressive progress in miniaturizing its drive unit, which consists of a permanent magnet motor, the power inverter, and a transmission. In doing so, the company claims to have a dramatically higher power-to-weight ratio, as measured by horsepower per kilogram (hp/kg). At 9 hp/kg, the Air’s drive unit is far higher than rivals that are closer to a ratio of 3.

Where Can You Buy a Lucid Motor and How Much Does One Cost?

Lucid Air Dream Edition is sold-out, but you can reserve a $139,000 Grand Touring and expect delivery in the early part of next year. You can also reserve a Touring or the $77,400 Pure, but those won’t be added to the production mix until the latter half of 2022.

The company which is is based in Newark, California, near Silicon Valley has announced its first-quarter earnings report that it was raising prices of the variants of its luxury Air sedan, beginning June 1. The price hikes push the base price of the Air sedan as much as 13%.

All existing reservation holders will not experience price hikes, the company said, noting that updated pricing for Canada will be made public on June 1. Considering that Lucid disclosed it has 30,000 reservations for the Air, it will be awhile before the company sees the benefit from these raised prices.

The Air Grand Touring will increase about $15,000 to a cost of $154,000; the Air Touring will cost $12,400 more at $107,400; and the Air Pure will go up $10,000, to $87,400. The Lucid Air Grand Touring Performance model, the price of which was announced two weeks ago, will remain the same at $179,000, the company said. All of these prices are for base models, so the final price tag could be much higher for customers.

Lucid’s guidance for deliveries remain unchanged, and the company said it still expects Air Grand Touring Performance deliveries in June, as well as Air Touring and Air Pure expected later this year. The Project Gravity SUV remains on target to begin production in the first half of 2024, according to Lucid’s CEO and CTO Peter Rawlinson.

How Much Electricity Will That Get the Motor Going?

The Lucid Air Dream Edition was recently rated by the Environmental Protection Agency with an estimated driving range of 520 miles on a full charge. 

That’s the longest range of any purely battery-powered car yet rated by the EPA, including Tesla’s Model S Long Range.

It’s not just a little longer, either. The Air goes an estimated 115 miles farther on a charge than the Tesla. It’s even farther than most gasoline cars can travel on a full tank.

But Lucid’s chief executive Peter Rawlinson, who once worked at Tesla and helped engineer the original Model S, thinks that jaw-dropping number, 520 miles, isn’t actually terribly important. For one thing, that range doesn’t come cheap. Prices for the Lucid Air sedan start at $74,000, but prices for the Dream Edition are more than double that, starting at $169,000.

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