Lucid Group’s (LCID), is enjoying a fantastic year. Although the stock has experienced a return of 283% in the past year it seems that the current price is too high. We believe it would be smart to place your bets on the auto stocks Volkswagen (DE) (VWAGY), Honda Motors (HMC), BRP Inc (NASDAQ:) and Rev Group (REVG), which have higher ratings than LCID in our proprietary POWR Ratings system. (NASDAQ:), Rev Group (REVG), have higher ratings than LCID according to our POWR Ratings. Continue reading. Lucid Group Inc. (LCID), a new-age car manufacturer based out of Newark, Calif. has been making headlines for some time. Lucid Air, the highly-anticipated sedan, was recently delivered by the company. In 2022, the company hopes to sell 20,000 vehicles. The company also plans to begin production in 2023 of the SUV.

But although the company’s ambitious plans look good on paper, the semiconductor chip shortage, which has been plaguing the prospects of the automobile industry this year, could force LCID to place the on-time delivery of its cars on the backseat. According to Morgan Stanley Adam Jonas (NYSE:), analyst, believes that the stock’s value is excessive. He rated LCID underweight and set a price target of $12 for the next twelve months. This indicates a possible 67.7% drop.

LCID’s overall rating is F in the POWR Ratings System, which equates with a Strong Sell. It is possible to place your bets on high-quality automobile stocks such as Volkswagen AG (OTC), Honda Motor Co., Ltd., BRP Inc., DOOO, Rev Group Inc., (REVG) instead. These stocks are more highly rated by our proprietary rating system.

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