In 2007, Lucid Motors (LCID) introduced itself as an enterprise that develops next-gen electric vehicle technology. Lucid’s reputation has been mixed since the very beginning. Lucid has gained investor trust recently and rallied well.

Lucid Motors, a merger with Churchill Capital Corp IV resulted in the company going public on July 23rd.  The company made its debut on the Nasdaq, and now operates under the name Lucid Group (ticker symbol LCID and LCIDW). Lucid was able to receive funding from the merger of around $4.4 billion in order to help its growth.

This capital will be used to fund the launch of the Lucid Air, its first electric vehicle built in house, by the end the year 2021. Already 11,000 pre-reservations have been made for the vehicle. The Lucid Air will begin deliveries later in the month.

Like other EV stocks of the same type, LCID stock is still a mystery. Many growth investors are praising the company’s potential. Bears, however, tend to look at the company’s value as an argument to stay away. I’m still not convinced by LCID stock but hold a neutral opinion.

See Top Smart Score stocks on TipRanks >>

The Post-Merger Hype

This doesn’t mean that LCID stock isn’t worth your investment. The post-merger buzz surrounding this company is incredible. The Lucid Air is expected to increase its deliveries in this quarter. Investors can then see the trajectory of this stock’s growth through 2022. Investors who are bullish about Lucid’s potential should consider buying this stock.

The merger was completed relatively quickly. Investors have cheered the formation of Lucid Group. Churchill IV has resigned from the NYSE after merging with Lucid Group and all of its shares have been transferred to LCID. Lucid Motors’ CEO, Peter Rawlinson is still in charge of the business after its merger.

We will now discuss the reasons why SPAC has been so hyped. This merger will allow the expansion of Arizona’s plant by an additional 2.7 million square footage. Lucid can benefit from growing demand by using the expanded facility.

This investment is for those who are bullish about Lucid’s long term prospects.

The company’s stock price movement has indicated a cautiously positive view on LCID stock. LCID stock’s price increased by 19% after its debut on Nasdaq. This stock trades in a wide range of price levels despite a string of selloffs. It is still unknown what the real value of this stock in early stages of EV growth stock will be.

It remains to be seen if Lucid will live up to its hype. However, analysts are still fairly bullish about LCID stock. Let’s see what experts have to say about where Lucid is headed.

What Do Analysts Have to Say About LCID Stock

According to the TipRanks analysts consensus rating, Lucid Group has been rated a Moderate Buy. From the 3 analysts ratings there are 1 Sell recommendation and 2 Buy recommendations.

This stock has an average LCID price target of $23.33. The analyst price targets vary from $30 to $12, depending on the company’s position. 

Lucid is the Bottom Line

Lucid Group has had a poor stock price performance compared to its EV competition. Lucid Group doesn’t have the same track record as its competitors in terms of growth. LCID stock, therefore, is more of a leap-of-faith for investors.

It’s becoming a bit crowded in the luxury EV marketplace. Lucid’s growth will depend on its ability to create positive buzz in the EV community. This is a very important aspect.

Investors considering LCID stock may be hesitant to invest in it as a growth opportunity. They might want to hold off until the first quarter. The future of this stock remains uncertain. The market appears to favor a wait-and see strategy with LCID stock.

Disclosure: Chris MacDonald had no position at the time this article was published.

Disclaimer: This article is solely the author’s opinion and does not reflect the opinions of TipRanks and its affiliates. It should only be used for informational purposes. TipRanks does not warrant the accuracy, reliability or completeness of this information. The article does not constitute a solicitation or recommendation to buy or sell securities. The article does not provide legal, financial, investment, or professional advice. It also doesn’t take into consideration the individual needs or requirements. Neither is the information contained in it a complete or comprehensive statement about the subject or issues discussed. TipRanks, its affiliates, disclaim any liability or responsibility in relation to the article’s content. You are responsible for your actions based upon the articles. TipRanks and its affiliates do not endorse or recommend this link. The past performance of TipRanks or its affiliates is not an indication of future prices, results, or performances.