Lucid's 2030 EV Production Goals Bring It to Half Where Tesla Stands Now

2 years ago 445

Tesla (TSLA) - Get Tesla Inc Report has a marketplace headdress that tops $1 trillion. That's a affluent valuation for a institution that has a unsmooth accumulation complaint of 1 cardinal vehicles a year.

General Motors (GM) - Get General Motors Company Report, which produced 6.83 cardinal cars successful 2020, down from a highest of 10 cardinal successful 2016, according to Statista, has a marketplace headdress of astir $89 billion.

Toyota (TM) - Get Toyota Motor Corp. Report, which has a $342 cardinal marketplace headdress and gets immoderate valuation premium owed to its large beingness successful hybrid vehicles, sold 8.6 cardinal vehicles successful 2020, a astir 10% driblet from the erstwhile year. Ford  (F) - Get Ford Motor Company Report, which has a marketplace headdress of $100 billion, sold conscionable nether 4.2 cardinal vehicles successful 2020, down from implicit 5 cardinal the erstwhile year. 

Lucid (LCID) - Get Lucid Group, Inc. Report, a would-be Tesla competitor, has a marketplace headdress of astir $70 cardinal and fundamentally nary sales.

That information shows that electrical vehicles bring a valuation premium that's substantial. It besides shows that Lucid gets an atrocious batch of payment of the uncertainty from investors. It whitethorn not request to scope the millions of vehicles sold by accepted automakers to warrant its existent valuation, but it's presently trading astatine a overmuch higher premium per car it has really sold than Tesla.

Where Does Lucid Motors Stand Now? 

Lucid has achieved its valuation without recognizing immoderate gross from selling vehicles. It did statesman delivering vehicles successful October, but the numbers were successful the dozens, oregon possibly adjacent the hundreds, but were inactive fundamentally zero.

"In our Q3 results you'll spot costs associated with our startup accumulation successful September. However, you volition not spot conveyance revenues until Q4, fixed that lawsuit deliveries began connected October 30th. In Q3, Lucid recognized gross of $232,000, predominantly related to the usage of our artillery packs successful the Formula E contention series," CFO Sherry House explained successful the company's third-quarter net call.

Lucid does person plans to ramp up its production, and CEO Peter Rawlinson seemed excited astir the involvement successful the company's archetypal vehicle, Lucid Air.

"Now, the fantastic acquisition these customers and the media's had with the Lucid Air to-date, person lone accrued involvement successful the brand, and the effect is an accelerated gait of caller reservations, presently astatine 17,000 and climbing quickly," helium said.

It's worthy noting that Lucid requires a $3,000 deposit to reserve a Lucid Air. That's a overmuch bigger committedness than the $100 Tesla asks for erstwhile radical reserve a Cybertruck.

Lucid Motors Lead

Where Does Lucid Hope to Go?

If everything goes good for Lucid, it expects to nutrient fractional arsenic galore vehicles arsenic Tesla did implicit the past 12 months astir 8 years from now. Rawlinson laid retired the company's accumulation roadmap during the call.

Right now, we're laser-focused arsenic a Company and the full absorption squad nether my direction, successful scaling what we've got. Laser focused connected increasing the standard towards 20,000 units adjacent twelvemonth and 50,000. But we're readying connected 500,000 units by the extremity of the decade. We person a program successful spot to grow Casa Grande to that level. And we've besides got localization of manufacturing. We've got unthinkable precocious worth successful our manufacturing arsenic good due to the fact that we manufacture the full exertion suite, the battery, the motor, the inverter, the full electrical powertrain, in-house. So we're not conscionable buying successful parts present and conscionable having worth that way. There's a full batch of in-built value-add to the cars that we've got. We've got a Casa Grande capableness planned retired to 365,000 units.

The "end of the decade," to beryllium clear, means 2030. That means that Lucid Investors person a agelong hold up until determination tin beryllium a transportation betwixt conveyance accumulation and valuation. And, of course, 17,000 reservations shows that request needs to turn rather a spot to get anyplace adjacent to really selling a fractional a cardinal vehicles successful 2030. 

Read Entire Article