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Lucid Group (NASDAQ:LCID), an EV manufacturer that is gunning for Tesla’s (NASDAQ:TSLA) apex position in the industry, has just received a crucial endorsement from Wall Street, paving the way for a gradual enactment of the stock’s bullish thesis.
To wit, Citi analyst Italy Michaeli has now initiated coverage of Lucid Group shares with a ‘Buy’ rating and a $28 stock price target, corresponding to an upside potential of over 47 percent from the current price levels.
While explaining the rationale behind this endorsement, Michaeli observed that Lucid Group has the "necessary building blocks" for his bullish thesis, including solid EV tech credentials, years of development experience, brand momentum, and speed-to-market. The analyst then went on to note:
"[Lucid Group] resembles much of what we like about Tesla, but without the lofty 2030 share & FSD/AV outcomes that one must underwrite."
Today’s endorsement from a major Wall Street player comes as Lucid Group is gearing up to initiate the deliveries of the $169,000 Lucid Air Dream Edition. The company is already sending emails to customers who have booked the EV to confirm their reservations and vehicle configuration. Moreover, as per an Instagram post by Mr. Jonny Lieberman at MotorTrend, who was invited by Lucid Group to test drive the Air EV, the deliveries are slated to begin in Q3 2021, which ends in September. Nonetheless, Lieberman seems to believe that any meaningful deliveries of the Lucid Air Dream Edition would take place in October 2021.
Bear in mind that Lucid Group continues to assert that it has garnered over 10K reservations for the Air EV. Moreover, the company expects to deliver at least 20K units to the North American and EMEA markets in 2022, with deliveries to China commencing only in 2023. Additionally, the Lucid Gravity SUV is now slated to launch in H2 2023. In another major development, Saudi Arabia’s Standards and Metrology Authority has now indicated that the EV manufacturer would likely commence its electric vehicle production line in the Kingdom by 2024. This makes sense as the Saudi PIF remains one of the largest investors in Lucid Group.
Update: CFRA Research Has Also Joined the Bullish Chorus on Lucid Group
CFRA Research has just initiated coverage on Lucid Group shares with a 'Buy' rating and a $25 stock price target. The firm's analyst Garrett Nelson notes:
"With first-class specs on its forthcoming luxury EV models, strong balance sheet and management team, and brand new factory in Arizona, LCID appears to check all the boxes of an industry newcomer with staying power."