Lucid Group Inc. (NASDAQ: LCID), expects that its upcoming Gravity crossover will deliver a substantial boost in sales, reduce losses and bring about a recovery of the stock price by 2025.
Gravity Grand Touring orders will be available to customers starting November 7. Lucid is selling this model at $94,900, but it will also be releasing a less expensive entry-level trim ($79.900) by the end this year.
Lucid’s stock has fallen more than 40% from its high of late August, the year to date.
What could Gravity mean for Lucid’s stock price?
Lucid has just one car in its lineup – the Air sedan – and it hasn’t been able to generate a particularly high sales volume ever since its launch.
According to the chief executive of the company, Peter Rawlinson, this is set to change as the mass production of the Gravity movie will begin before the beginning of the next year.
I’m sure we will see a significant increase in the demand for our product.
In an interview with CNBC on Tuesday, the ratio of SUVs to sedans is about 6-to-1. This will put us in a strong position.
This massive increase would have a material impact on Lucid stocks that are struggling because of a disappointing market.
In the first quarter of 2018, the EV Company delivered 7,142 total vehicles. This is a substantial increase over the previous year.
Lucid Stock: Is it worth purchasing at the current price?
Lucid plans to increase production at its Arizona facility in order to keep up with the demand that, initially, it anticipates will exceed initial production.
Recently, the automaker raised $1.75 Billion to ensure “cash runway into 2026.”
These developments give investors at least some comfort when investing in Lucid.
According to Bank of America’s John Murphy, Nasdaq listed firm is in fact “one of most appealing among the universe of new electric vehicle automakers.”
He is convinced that LCID “has more pieces in place and are in the process of being put in place than most of its competitors” and also has great confidence in their leadership. Murphy’s rating of Lucid Group is “neutral”.
BofA estimates that the electric vehicle company will need to raise more than $10 billion in capital before they can achieve self-sustainability.
Lucid remains an investment that is high risk, but those who are patient may also reap high rewards.
Crispus Nyaga, our analyst, also believes that this manufacturer of electric vehicles has a promising future.
The Lucid Stock: Could the new Gravity SUV save it? This post may change as new information becomes available
