Lucid (NASDAQ: LCID) stock price has been in a slump for the past 18 months. The stock is currently trading 88% below its 2021 all-time high. In this article, we will evaluate the Lucid stock price prediction for long-term and short-term investment.
The shares of Lucid Group are listed on the NASDAQ stock exchange, which is the second biggest stock exchange in the world. The stock of the EV manufacturer trades under the ticker NASDAQ: LCID. The current Lucid stock price is $7.55.
According to the latest Lucid Motors news, the company has reported worst-than-expected earnings for the first quarter of 2023. This has increased the selling pressure on the stock, which was already in a downtrend. The Q1 earnings report, which was released on May 8, revealed a loss of $0.43 per share.
The following NASDAQ: LCID stock depicts an extremely bearish price action by the shares of electric vehicles manufacturer. The stock is currently 88% down from its all-time high and 57% down from the yearly highs. The latest analysis shows that there could be more downside for Lucid stock price.
Lucid shares are currently trading 22.5%, up from their all-time lows. The $6.09 low was tagged in January 2023. While the stock may retest the $8.4 resistance soon, a further downside still remains the most likely scenario.
The NASDAQ: LCID chart reveals that the $15.5-$17.5 remains the biggest resistance for the Lucid shares. The stock retested this resistance in January 2023 but failed to gain any strength above it. Consequently, the stock is now trading much below the 200 moving average on the daily chart. My Lucid stock price prediction 2023 is that the shares might trade within the $4-$10 range.
Despite reporting very poor earnings in Q1 2023, Lucid Motors remain very ambitious. The company intends to produce 10,000 vehicles in 2023. Currently, the company is producing Lucid Air which has been in production since 2021.
The much-awaited large electric SUV, Gravity, is planned to be produced in 2024. Lucid stock price prediction 2025 will depend on the success of the new SUV. Nevertheless, it will still be difficult for the stock to trade above $17.5 by 2025.
The price prediction of any stock seven years from now is anybody’s guess. Lucid already has major competitors Like Tesla, NIO, and Rivian, which are doing quite well. By 2030, EV sales are projected to reach 40%-50% of total car sales in the USA. If Lucid gets a significant chunk of those sales, then the stock can easily be trading above $32.
However, innovative companies like Lucid are always high-risk investments, and not every EV company can achieve what Tesla has achieved in the past few years. Such companies often run into cash issues which leave them on the verge of bankruptcy within a very short span of time.
I’ll keep posting my updated LUCID stock analysis in my free Telegram group, which you are welcome to join.
Analysts are expecting a recession to hit the US economy in the latter half of this year. If this happens, then the sales of electric vehicles might see a sharp decline in the next 18 months. It will be very difficult for the company to launch its upcoming SUV Lucid Gravity in a recession-struck environment.
Lucid was publicly listed via its merger with a Special Purpose Acquisition Company (SPAC) in July 2021. Due to the bull market, most of the SPACs became overvalued in 2021. Therefore, these stocks got hit the most in the following bear market. The high interest rates further intensified the selling pressure on Lucid share price, which is 88% down from its 2021 highs.
You can buy Lucid shares from any reliable online broker. These brokers provide different investment products (CFDs, Futures, Spots, Options etc.) for you to gain exposure to Lucid stock from the comfort of your home. You just need to go to a physical stock exchange to buy the shares. Robinhood, Exness, TD Ameritrade, Fidelity, and Interactive Brokers are some of the most popular online brokers.
As long as the NASDAQ: LCID keeps trading below $10.72, there is no chance of any recovery. While there can be little pumps in the coming weeks, the broader outlook on the stock will remain bearish until the price breaks above the $17.5 level. The tech stocks may see a relief rally as soon as the Fed pivot and decrease interest rates.
Lucid stock price prediction depends on multiple fundamental and technical factors. Any investment in Lucid Motors at this stage is tricky as the company doesn’t have enough products in the market. However, the risk-to-reward ratio may improve if the price drops to new lows in the coming months. This may present a much better long-term buying opportunity as compared to the current price.
This post was last modified on Nov 09, 2023, 03:04 GMT 03:04