Lucid Motors’ merger was one of the most anticipated mergers in the SPAC space. However, the stock hasn't shown the same level of enthusiasm after the merger. LCID stock has dropped by nearly 30 percent from the day it got publicly listed. The most recent catalyst that led to its fall was the expiry of the lockup period for PIPE investors on Sept. 1. The company received a PIPE investment of $2.5 billion, which was the largest for a SPAC.
LCID stock hit its lowest level on Sept. 1 at $17.79. However, there could be one positive catalyst for the company on the horizon, which could give the stock some upward strength. Lucid is scheduled to hold a Lucid Air production preview event starting on Sept. 27. What should investors expect from Lucid’s Air production preview event?
The week-long event will be held at Lucid’s Advanced Manufacturing Plant (AMP-1) factory in Casa Grande, Ariz. It will give insights into the assembly processes of Lucid’s first vehicle. The event will be open to media members, policymakers, and a select group of customers.
Lucid Motors’ AMP-I factory
The company completed the first phase of construction of the AMP-I factory in less than a year. Lucid's AMP-1 was designed with a focus to allow for additional phases of expansion at the site. Casa Grande’s City Council has approved the expansion of the factory, which will increase production volumes as Lucid ramps its manufacturing efforts over the next several years. This will include the production of the brand's first SUV, Project Gravity, which starts in 2023.
Lucid Air production preview is crucial for investors.
The event will be crucial for investors and analysts. They will get deep insights into the company’s advanced EV technology and will witness the production processes for Air. The people attending the preview will also have the opportunity to test drive the electric sedan. The wider investor group will be eager to hear the reviews of the vehicle.
The two-day review of the Air by Motortrend received a lot of applauds. Motortrend’s reviewer, Jonny Lieberman, who has reviewed hundreds of vehicles, was impressed by the Air Dream Edition.
Lucid Air versus Tesla Model S
The company is preparing to make its first deliveries of Lucid Air later this year. The Lucid Air Dream Edition will be the first one to launch and will be available in two options—range and performance. The Lucid Air is set to compete with Tesla Model S. In terms of range, Lucid Air beats Tesla Model S Plaid with an EPA range of 517 miles—almost 20 percent higher than Model S.
Tesla Model S Plaid is slightly more expensive and comes with a price tag of $72,990 versus Air’s starting price of $69,900 (both after tax credits). Plaid is the Tesla Model S premium brand, while Lucid Air is the base model.
In terms of the time it takes to charge, Tesla Model S Plaid takes almost 15 minutes for 200 miles worth of charge. However, when it comes to acceleration, Model S Plaid beats Air because it can reach 60 miles per hour in just 1.99 seconds, while Air takes 2.5 seconds to do that. Lucid Air has a strong potential to outdo Tesla Model S Plaid.
Is Lucid Motors stock a buy?
Lucid Motors has a strong management team and a strong product to back it up. However, the company’s tall claims led to over-exuberance for the stock, which has been coming down to more reasonable levels recently. If the company is able to deliver on schedule, its stock could make a move higher and the current dip seems like a good opportunity to get in.