Lucid Group: Willing To Bite On Extended Runway, Increasing Market Share (Rating Upgrade)
Summarize this article with:
Gary Alexander32.84K FollowersFollow5ShareSavePlay(8min)Comment(1)SummaryLucid is upgraded to a "Buy," leveraging improved liquidity and rapid delivery growth despite sharp share price declines.LCID's liquidity now extends through H1 2027, supported by $5.5 billion in capacity and reduced FY25 capex guidance.Deliveries grew 47% y/y in Q3, outpacing Tesla and Rivian, signaling rising brand momentum ahead of the mid-size SUV launch.LCID trades at less than a third of Tesla's forward revenue multiple, offering a potential value play with manageable near-term risks. Khosrork/iStock Editorial via Getty Images Amid an incredibly volatile stock market this year, one of the biggest surprise turnouts was Tesla (TSLA). The world's leading EV brand initially lost half of its value this year as Elon Musk's relationship with the White House soured, compoundedThis article was written byGary Alexander32.84K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in LCID over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.