Lucid stock is near a potential buy point after the EV startup surged on news that its first electric cars will beat Tesla (TSLA) on driving range.
Last week, the Environmental Protection Agency (EPA) released its official range for the Lucid Motors (LCID) Air. The ultraluxury Dream edition of the Air electric sedan received an EPA-rated range of 520 miles on a single charge, confirming Lucid management’s claim that the Air would be the longest-range electric vehicle ever.
The Lucid Air Dream outguns the Tesla Model S Long Range Plus, the previous range champion, by more than 100 miles. It starts at $169,000, but a more affordable Air edition is to follow.
The Air’s battery pack, more efficient motors and aerodynamic styling underpin its impressive range, according to reports.
News that Lucid’s Air beats Tesla in range fueled a surge for Lucid stock. LCID stock also received a bullish endorsement from Bank of America analyst John Murphy, who called it a cross between a Tesla and Ferrari (RACE), setting a 30 price target.
Various reports peg the start of deliveries in September or October.
Lucid Stock, EV Stocks
Shares of Lucid Motors eased 3% on the stock market today, snapping a five day surge. But after a 15% surge last week and 13% pop so far this week, Lucid stock eyes a possible new 29.91 double-bottom buy point in a base stretching back to March. Investors looking for an early entry could use a 29.13 buy point off a bottoming base, according to MarketSmith chart analysis. Tesla stock added 1% Wednesday.
Lucid touts more than 10,000 reservations for the Air, representing $900 million in anticipated sales. It describes the vehicle’s interior as a “glass cockpit.”
The Lucid Air features an autonomous driving system enabled with 32 sensors including Lidar, a safety technology that Tesla once spurned.
Lucid stock came public July 26 through a blank-check merger. The company’s CEO, Peter Rawlinson, previously engineered the Tesla S model.
Other EV News
Also on Wednesday, Ford (F) announced it will partner with Redwood Materials on EV battery recycling. The U.S. auto giant invested $50 million into Redwood Materials, a Nevada-based company offering sources of anode and cathode materials produced from recycled batteries.
Find Aparna Narayanan on Twitter at @IBD_Aparna.
YOU MAY ALSO LIKE:
Need Your Help Today. Your $1 can change life.