Lucid(NASDAQ: LCID) stock had been giving up all its gains from August so far this month until this morning when it surged, jumping 7.3% higher as of 11:10 ET Wednesday.
The luxury electric vehicle (EV) maker is placing big bets on its upcoming Gravity SUV. Yesterday, Lucid didn't just showcase and reveal more information about Gravity at its Technology and Manufacturing Day event but also gave a glimpse of its upcoming crossover. The event has renewed investors' hopes as they see better days ahead for Lucid.
Lucid shifts focus on new EVs and costs
Lucid confirmed Gravity is on track to go into production later this year. It also said the SUV will be equipped with Tesla's NACS charging connector in 2025, allowing owners access to more than 15,000 superchargers.
Lucid also revealed it will launch a midsize SUV with a starting price of under $50,000 with production expected to start in 2026. The company emphasized its cost efficiency and claimed that its new crossover would deliver the "same range" as competitors, even with a smaller battery pack. The upcoming SUV will be powered by Atlas, a next-generation powertrain unit that Lucid announced yesterday.
Cost efficiency is the keyword here, as Lucid is burning cash rapidly on its only EV currently on sale, the Air, which has hit investor sentiment in its stock. For now, backing from its largest shareholder -- Saudi Arabia's sovereign public fund, the Public Investment Fund (PIF) -- is helping Lucid run its operations and invest in new EVs. In August alone, Lucid received a funding commitment of $1.5 billion from PIF.
Lucid's production and deliveries are finally going up
At yesterday's event, Lucid also revealed that it delivered more cars this year through Aug. 31 than in the whole of 2023, when it delivered 6,001 units.
With Lucid also reiterating its full-year production guidance of 9,000 units last month, its total deliveries in 2024 should be significantly higher. I now expect a more than 60% jump in deliveries versus 2023. That also means the company is clearing out its Air inventory, even as it shifts focus to its Gravity SUV, which is again a good sign.
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Neha Chamaria 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.
