Latest news with #PeterRawlinson
Yahoo
2 days ago
- Automotive
- Yahoo
Prediction: 1 EV Stock That Will Be Worth More Than Lucid 1 Year From Now
Key Points Lucid has struggled to ramp up its production over the past three years. Its track record of missed forecasts and broken promises can't be ignored. Archer Aviation has more irons in the fire than Lucid's luxury EV business. 10 stocks we like better than Lucid Group › Lucid (NASDAQ: LCID), a producer of luxury electric vehicles, attracted a lot of attention when it went public by merging with a special purpose acquisition company (SPAC) four years ago. That's mainly because it was led by Tesla's (NASDAQ: TSLA) former chief engineer Peter Rawlinson, and it had already started delivering its first Air sedans. Yet, like many other SPAC-backed start-ups, Lucid overpromised and underdelivered. It originally set out to deliver 20,000 vehicles in 2022, 49,000 vehicles in 2023, and 90,000 vehicles in 2024. But in reality, its annual deliveries only reached 4,369 in 2022, 6,001 in 2023, and 10,241 in 2024. Lucid blamed that slower-than-expected growth on its supply chain constraints, intense competition, a challenging macro environment, and the delayed launch of its Gravity SUV. Peter Rawlinson also resigned from the CEO position this February, and the board still hasn't appointed his permanent successor yet. From 2022 to 2024, Lucid's revenue grew at a CAGR of 15% from $608 million to $808 million. However, its net loss widened from $2.56 billion to $3.06 billion. Its stock has declined nearly 90% since its first post-merger trade, but it still has a market cap of $8.6 billion -- or 11 times last year's sales. That high price-to-sales ratio suggests that some investors are hopeful that its Saudi Arabian investors (who own nearly two-thirds of its shares) can help it achieve its goal of more than doubling its production to 20,000 vehicles this year. That's why analysts expect its revenue to surge 71% to $1.38 billion this year as it narrows its net loss of $2.9 billion. I don't have much faith in those estimates, though. Lucid repeatedly missed its own expectations, struggled to scale up its business, and continues to dilute its shares as it racks up steep losses. So, instead of betting on Lucid's Hail Mary turnaround, investors should focus on a less valuable EV stock that might just grow faster and surpass its market cap within the next year: the electric vertical takeoff and landing (eVTOL) aircraft maker Archer Aviation (NYSE: ACHR), which currently has a market cap of $8.43 billion. Why could Archer Aviation have a brighter future than Lucid? Archer's Midnight eVTOL aircraft can carry a single pilot and four passengers, travel up to 100 miles without recharging, and reach a maximum speed of 150 miles per hour. Compared to helicopters, they're quieter, greener, and easier to land in crowded urban areas. Those advantages make them well-suited for short-range taxi services. Archer hasn't generated any meaningful revenue yet, but it ended its latest quarter with a massive backlog of approximately $6 billion. That backlog includes big orders from United Airlines, Future Flight Global, Soracle (a joint venture between Japan Airlines and the Japanese conglomerate Sumitomo), Ethiopian Airlines, Abu Dhabi Aviation, Stellantis, and the U.S. Air Force. Archer plans to start its first air taxi flights in Abu Dhabi later this year. In the U.S., it's waiting for the Federal Aviation Administration's (FAA) final approval for its commercial flights to start up its air taxi services. To support that expansion, it aims to produce 10 aircraft in 2025, 48 aircraft in 2026, 252 aircraft in 2027, and 650 aircraft in 2028. It also plans to launch its own first-party air taxi service within the next two years. If it achieves those goals, analysts expect its annual revenue to rise from $13 million in 2025 to $437 million in 2027. Archer's roadmap sounds ambitious, but its growing backlog could support those plans, and its nascent market is expanding. From 2024 to 2030, Markets and Markets expects the global eVTOL aircraft market to grow at a CAGR of 35.3% as they displace traditional helicopters. Archer has two strengths that Lucid lacks: an early mover's advantage in a nascent market, and a lot of pent-up demand for its products. Lucid entered the EV market long after Tesla and other EV makers saturated the market, and it quietly stopped disclosing the size of its reservation backlog (which had been shrinking) at the start of 2023. With a market cap of $7.5 billion, Archer doesn't look cheap at 17 times its projected sales for 2027. By comparison, Lucid trades at less than two times its estimated sales for 2027. But if Lucid fails to ramp up its production this year, its stock could easily be cut in half. Why could Archer become more valuable than Lucid? Archer still trades at a steep discount to its biggest rival, Joby Aviation (NYSE: JOBY), which trades at a whopping 70 times its projected sales for 2027. If Archer launches its commercial air taxi flights in the U.A.E. and gains the FAA's approval for its planned flights in the U.S., it might command a much higher valuation within the next 12 months. If Archer achieves those goals and its stock trades at 30 times its estimated sales for 2027 by then, its market cap would swell to $13.1 billion and eclipse Lucid's current market cap. As for Lucid, it could struggle to maintain its current market cap if it keeps disappointing its investors. Should you invest $1,000 in Lucid Group right now? Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy. Prediction: 1 EV Stock That Will Be Worth More Than Lucid 1 Year From Now was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
3 days ago
- Automotive
- Globe and Mail
Prediction: 1 EV Stock That Will Be Worth More Than Lucid 1 Year From Now
Key Points Lucid has struggled to ramp up its production over the past three years. Its track record of missed forecasts and broken promises can't be ignored. Archer Aviation has more irons in the fire than Lucid's luxury EV business. 10 stocks we like better than Lucid Group › Lucid (NASDAQ: LCID), a producer of luxury electric vehicles, attracted a lot of attention when it went public by merging with a special purpose acquisition company (SPAC) four years ago. That's mainly because it was led by Tesla 's (NASDAQ: TSLA) former chief engineer Peter Rawlinson, and it had already started delivering its first Air sedans. Yet, like many other SPAC-backed start-ups, Lucid overpromised and underdelivered. It originally set out to deliver 20,000 vehicles in 2022, 49,000 vehicles in 2023, and 90,000 vehicles in 2024. But in reality, its annual deliveries only reached 4,369 in 2022, 6,001 in 2023, and 10,241 in 2024. Lucid blamed that slower-than-expected growth on its supply chain constraints, intense competition, a challenging macro environment, and the delayed launch of its Gravity SUV. Peter Rawlinson also resigned from the CEO position this February, and the board still hasn't appointed his permanent successor yet. From 2022 to 2024, Lucid's revenue grew at a CAGR of 15% from $608 million to $808 million. However, its net loss widened from $2.56 billion to $3.06 billion. Its stock has declined nearly 90% since its first post-merger trade, but it still has a market cap of $8.6 billion -- or 11 times last year's sales. That high price-to-sales ratio suggests that some investors are hopeful that its Saudi Arabian investors (who own nearly two-thirds of its shares) can help it achieve its goal of more than doubling its production to 20,000 vehicles this year. That's why analysts expect its revenue to surge 71% to $1.38 billion this year as it narrows its net loss of $2.9 billion. I don't have much faith in those estimates, though. Lucid repeatedly missed its own expectations, struggled to scale up its business, and continues to dilute its shares as it racks up steep losses. So, instead of betting on Lucid's Hail Mary turnaround, investors should focus on a less valuable EV stock that might just grow faster and surpass its market cap within the next year: the electric vertical takeoff and landing (eVTOL) aircraft maker Archer Aviation (NYSE: ACHR), which currently has a market cap of $8.43 billion. Why could Archer Aviation have a brighter future than Lucid? Archer's Midnight eVTOL aircraft can carry a single pilot and four passengers, travel up to 100 miles without recharging, and reach a maximum speed of 150 miles per hour. Compared to helicopters, they're quieter, greener, and easier to land in crowded urban areas. Those advantages make them well-suited for short-range taxi services. Archer hasn't generated any meaningful revenue yet, but it ended its latest quarter with a massive backlog of approximately $6 billion. That backlog includes big orders from United Airlines, Future Flight Global, Soracle (a joint venture between Japan Airlines and the Japanese conglomerate Sumitomo), Ethiopian Airlines, Abu Dhabi Aviation, Stellantis, and the U.S. Air Force. Archer plans to start its first air taxi flights in Abu Dhabi later this year. In the U.S., it's waiting for the Federal Aviation Administration's (FAA) final approval for its commercial flights to start up its air taxi services. To support that expansion, it aims to produce 10 aircraft in 2025, 48 aircraft in 2026, 252 aircraft in 2027, and 650 aircraft in 2028. It also plans to launch its own first-party air taxi service within the next two years. If it achieves those goals, analysts expect its annual revenue to rise from $13 million in 2025 to $437 million in 2027. Archer's roadmap sounds ambitious, but its growing backlog could support those plans, and its nascent market is expanding. From 2024 to 2030, Markets and Markets expects the global eVTOL aircraft market to grow at a CAGR of 35.3% as they displace traditional helicopters. Archer has two strengths that Lucid lacks: an early mover's advantage in a nascent market, and a lot of pent-up demand for its products. Lucid entered the EV market long after Tesla and other EV makers saturated the market, and it quietly stopped disclosing the size of its reservation backlog (which had been shrinking) at the start of 2023. With a market cap of $7.5 billion, Archer doesn't look cheap at 17 times its projected sales for 2027. By comparison, Lucid trades at less than two times its estimated sales for 2027. But if Lucid fails to ramp up its production this year, its stock could easily be cut in half. Why could Archer become more valuable than Lucid? Archer still trades at a steep discount to its biggest rival, Joby Aviation (NYSE: JOBY), which trades at a whopping 70 times its projected sales for 2027. If Archer launches its commercial air taxi flights in the U.A.E. and gains the FAA's approval for its planned flights in the U.S., it might command a much higher valuation within the next 12 months. If Archer achieves those goals and its stock trades at 30 times its estimated sales for 2027 by then, its market cap would swell to $13.1 billion and eclipse Lucid's current market cap. As for Lucid, it could struggle to maintain its current market cap if it keeps disappointing its investors. Should you invest $1,000 in Lucid Group right now? Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025
Business Insider
18-07-2025
- Automotive
- Business Insider
Lucid Stock (LCID) Rockets Over 30% after $300M Uber Robotaxi Investment
Shares in electric vehicle maker Lucid (LCID) charged higher today after Uber Technologies (UBER) pledged to invest $300 million in a robotaxi deal. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Dozens of Markets The agreement which will start in late 2026 and last for 6 years will see Uber buying and deploying over 20,000 Lucid Gravity SUVs. They will be equipped with autonomous vehicle technology from startup Nuro. The aim is to start in one major U.S. city, but then roll out to 'dozens of markets' around the world. The vehicles will be owned and operated by Uber or its third-party fleet partners and made available to riders exclusively via the Uber platform. The first Lucid-Nuro robotaxi prototype is already operating autonomously on a closed circuit at Nuro's Las Vegas proving grounds. Uber said that the longer 450-mile estimated range of the Lucid Gravity would mean less frequent downtime for charging, minimizing costs and maximizing vehicle availability. 'This investment from Uber further validates Lucid's fully redundant zonal architecture and highly capable platform as ideal for autonomous vehicles, and our industry-leading range and spacious well-appointed interiors, as ideal for ridesharing,' said Marc Winterhoff, Interim CEO at Lucid. 'This is the start of our path to extend our innovation and technology leadership into this multi-trillion-dollar market.' Indeed, it promises to be a huge boost the company whose stock price has suffered this year with lower than expected deliveries and the departure of CEO Peter Rawlinson. Uber Push Uber said it would invest hundreds of millions of dollars in Lucid and Nuro. The move is another example of Uber's renewed push into the robotaxi space after exiting in 2020. Since then, it has pivoted to partnerships with several technology developers, including Alphabet (GOOGL) -owned Waymo and Aurora. It also signed a robotaxi agreement in April with Volkswagen (VWAGY) that will supply its vans for commercial service planned for Los Angeles next year. Other rivals include Tesla (TSLA), which recently launched a robotaxi trial in Texas. Uber will be hoping to boost its platform numbers which have been relatively static over the last few years. Is LCID a Good Stock to Buy Now? On TipRanks, LCID has a Hold consensus based on 1 Buy, 8 Hold and 1 Sell ratings. Its highest price target is $5. LCID stock's consensus price target is $2.70 implying a 13.88% downside.
Yahoo
10-07-2025
- Automotive
- Yahoo
Prediction: Buying Lucid Group Stock Today Could Set You Up for Life
The electric vehicle maker's sales growth is about to take off. But Lucid's biggest opportunity may not be making EVs at all. 10 stocks we like better than Lucid Group › If you want to add significant upside potential to your portfolio, check out electric car stocks. In 2021, electric vehicles (EVs) represented just 3.4% of all vehicle sales in the U.S. By 2030, however, nearly 30% of all vehicle sales are expected to be electric. As Tesla stock has proven, big gains are possible by investing early. While plenty of risks remain, Lucid Group (NASDAQ: LCID) could very well be the next Tesla, potentially generating huge wealth for your portfolio in the process. Right now, there are two reasons in particular to believe Lucid shares are a compelling "buy it for life" investment. One of the biggest drivers of growth in an EV maker's journey is the launch of so-called "mass market" vehicles. These are cars that are affordable to the masses, with price tags typically under $50,000. Yet again, Tesla provides clear proof of how valuable the launch of mass market vehicles can be. Today, its two most affordable models -- the Model 3 and Model Y -- account for more than 90% of its vehicle sales. Without these two models, Tesla would arguably be just a fraction of its current size. Right now, Lucid is far from achieving Tesla's size and scale. Last year, the company had just one model on the market: The Lucid Air, a sedan that can easily cost more than $100,000 depending on options. In early 2025, Lucid doubled its lineup with the launch of its Gravity SUV platform. Analysts believe that this will help sales grow by 72% this year, with another 97% growth expected in 2026. But the Gravity SUV can also cost upwards of $100,000 depending on options, limiting its appeal to a wide audience. By the end of next year, however, Lucid expects to start production of two mass market vehicles: a sedan and a crossover, both priced under the critical $50,000 threshold. These vehicles will essentially compete head to head with Tesla's Model 3 and Model Y. "Lucid does not exist to be a niche luxury manufacturer," the company's former CEO, Peter Rawlinson, stressed in February. Critically, Rawlinson departed Lucid abruptly a few weeks after those comments were made, putting his optimistic timeline in jeopardy. If the launch timeline is maintained, however, we could see Lucid's growth rise exponentially in 2027, following what are expected to be banner years in both 2025 and 2026. The impending launch of two new mass market vehicles should get investors excited. But there's another growth opportunity that could arguably be even more lucrative in the long term. Rawlinson wasn't shy about his expectations for the company. "We want Lucid to be huge," he said earlier this year before his departure. He wanted the company to produce more than a million cars every year by the early 2030s. Beyond that, he thought Lucid's future might be to simply sell its technology to other automakers -- an arguably more profitable business with greater scaling potential. Lucid's transition toward this future has already begun. In 2023, it announced a partnership with Aston Martin. The deal made it so that Aston Martin could gain access to Lucid's proprietary powertrain technology, which will be implemented in upcoming Aston Martin EVs. In December 2024, Lucid teased that it was talking with "a couple" of other manufacturers about similar deals. "It would be lovely if we could supply technology to a traditional car company to help them on their way to sustainability," Rawlinson commented. "Perhaps we can leverage economies of scale with their parts bin and other aspects of the business." We haven't received any updated commentary from new CEO Marc Winterhoff. But long term, Lucid's car manufacturing business should simply be a way to showcase its technology. If that's true, we could see Lucid transitioning to this business model entirely, since tech licensing typically generates higher profit margins and greater scaling opportunities. As EV penetration takes off, Lucid could essentially sell its technology to the winners, rather than needing to compete directly itself. While there remains plenty of execution risk, this makes Lucid a promising investment that could generate immense wealth over a multi-decade holding period. Before you buy stock in Lucid Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lucid Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $694,758!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $998,376!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy. Prediction: Buying Lucid Group Stock Today Could Set You Up for Life was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
02-07-2025
- Automotive
- Yahoo
Lucid sales inch forward as EV maker pushes to ramp Gravity production
Lucid delivered 3,309 vehicles in the second quarter, a 6% increase in sales from the previous period and a new sales record for the EV maker. Lucid also reported it produced 3,863 vehicles in the second quarter, nearly 1,000 more than it made in the previous period. Lucid produced 2,212 vehicles in the first quarter and shipped another 600 additional vehicles to Saudi Arabia for final assembly. The delivery and accompanying production figures show Lucid has maintained — and even made some progress — in an otherwise shaky EV market. However, there's still a considerable gap to fill if the company wants to meet its annual production goal of 20,000 vehicles. In the first six months of the year, Lucid produced 6,075 vehicles — leaving the company with a nearly 14,000-vehicle hole to fill. To meet that target, Lucid will have to ramp production of its new all-electric Gravity SUV. The company kicked off production of the Gravity in December 2024, most of which was sold to 'employees, family, and friends.' The customer mix has started to shift more to the general consumer in recent months. However, production has been slower-than-desired,' CEO Marc Winterhoff told Automotive News in an interview in June. The CEO, who replaced Peter Rawlinson earlier this year, blamed tariff pressures and a focus on quality for the slow start. Winterhoff has been quick to cite customer interest in the Gravity, comments meant to dispel any concerns that there's a demand problem. During the company Q1 earnings call in April, Winterhoff noted the company encountered a 'modest supply chain bottleneck that has impacted its timeline.' He emphasized at the time that 'the more important point is that we're taking the time to get it right, not just getting it out.' He said at the time the supply chain bottlenecks would be being resolved in the second quarter and made plans to ensure the company would meet its production plans for 2025. Lucid wouldn't comment on the delivery and production results, including the breakdown between its Air and Gravity models. A spokesperson noted Lucid will share more details at its upcoming earnings report, which is set to be released August 5. It's also unclear if Lucid's new company car program and sales to rental fleets helped boost its Q2 figures. Lucid sold the equivalent of around 300 cars in the first quarter to what it refers to as 'rental companies,' a footnote in its Q1 regulatory filing revealed. At the time, Nick Twork, a spokesperson for Lucid Motors, told TechCrunch that despite the use of the term, the 'vast majority' of the vehicles referred to in the footnote were sold to leasing companies and leased back to the automaker as part of a revamped company car program.
