Lucid: Electric Luxury with Tailwind - From Boom to Robotaxi Revolution

Shares of luxury electric vehicle manufacturer Lucid rose by 2.8% in early trading after analysts from Cantor Fitzgerald raised their price target for the stock from $20 to $26 while maintaining a neutral rating. This adjustment follows investor discussions with Lucid's CEO and CFO, who reaffirmed their vehicle production forecasts of 18,000 to 20,000 units for the current fiscal year. The focus was particularly on significant supply contracts with the Saudi state for up to 100,000 vehicles, as well as a recently concluded agreement to supply about 20,000 vehicles to Uber for use in its robotaxi program. Additionally, Lucid announced expansion plans for its sales network in Germany, intending to partner with established car dealers to strengthen its presence in Europe. After the initial increase, the stock price cooled to $22.65, still a 1.9% gain compared to the previous day's close. Investors are questioning whether now is the right time to invest in Lucid, particularly given the volatility the stock has shown over the past year, with more than 52 price changes of over 5%. A recent major success was the announcement two days ago of Lucid's partnership with Uber to supply 20,000 Gravity SUVs, which impressed many investors. The $300 million contract is considered a significant step for the electric vehicle manufacturer, which is still struggling with operational losses. This partnership is seen as a strong signal for Lucid's technology and new SUV model, offering a potentially valuable new sales channel for the company. Currently, Lucid is still trading 25.2% below its value at the beginning of the year and 36.9% below its 52-week high. Investors who invested $1,000 in Lucid five years ago would now see a value of $231.83. Market speculation is reminiscent of the golden times of Microsoft and Apple, and perhaps the next big breakthrough will come from an unexpected direction.