LCID Stock: Why It Surged This Past Week

By Amit Chowdhry ● Sep 20, 2021
  • The shares of Lucid Group Inc (NASDAQ: LCID) are up more than 15% over the past 5 trading days. This is why it happened.

The shares of Lucid Group Inc (NASDAQ: LCID) are up more than 15% over the past 5 trading days. There are at least a couple of catalysts driving up the stock price.

One of the catalysts has to do with the Environmental Protection Agency (EPA) naming the Lucid Air Dream range edition as the electric car that has the longest battery range. The Air Dream Edition exceeds a range of 500 miles on a single charge at a range rating of 520 miles. This is over 100 miles more than the Tesla Model S long-range edition (405 miles). Lucid CEO and CTO Peter Rawlinson previously served as the chief engineer for the Model S vehicle at Tesla.

“I’m delighted that our Lucid Air Dream Edition Range has been officially accredited with a range of 520 miles by the EPA, a number I believe to be a new record for any EV. Crucially, this landmark has been achieved by Lucid’s world-leading in-house EV technology, not by simply installing an oversize battery pack,” said Rawlinson in a statement. “Our race-proven 900V battery and BMS technology, our miniaturized drive units, coupled with our Wunderbox technology endow Lucid Air with ultra-high efficiency, enabling it to travel more miles from less battery energy. The next generation EV has truly arrived!”

Lucid had recently completed a real-world first drive with Motor Trend featuring a pair of Dream Edition Range cars. And a Motor Trend journalist and Lucid’s CEO drove separate cars from Los Angeles to San Francisco at highway speeds and then across the San Francisco Bay to Lucid’s global headquarters – all without stopping to charge and with plenty of range remaining on each vehicle. 

BofA analyst John Murphy recently initiated coverage of Lucid Group with a “Buy” rating and $30 price target. Murphy called Lucid Group the “Tesla/Ferrari of new EV automakers.” 

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.