© Reuters Cantor Fitzgerald launches Lucid Group (LCID).
by Michael Elkins
Lucid Group (NASDAQ:) traded up 3.63% to a $23 price target after Cantor Fitzgerald initiated coverage on the luxury electric vehicle company in pre-market trading on Tuesday.
“Lucid is a technology and automotive company that designs, engineers and builds luxury EVs, powertrains and battery systems sold online or through retail studios,” Cantor Fitzgerald’s analyst wrote in a note. .
Lucid Air currently offers an industry-leading range of up to 520 miles per charge. This range is significantly different from other EVs and is powered by an efficient and powerful powertrain that Lucid develops and manufactures in-house. Lucid vehicles also come with a super-fast, bi-directional “Wunderbox” boost charging technology >900V system that can charge 300 miles in ~22 minutes.
The company has a major commitment from the government of Saudi Arabia to sell up to 100,000 vehicles over a 10-year period. The deal, 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 2Q23, with initial orders expected to increase to 1,000-2,000 vehicles per year and 4,000-7,000 by 2025.
The analyst said in his note that he believes this deal “makes sense” and will help LCID grow production faster.