Make no mistake about it: electric vehicle (EV) manufacturer Lucid Group (NASDAQ:LCID) isn’t trying to compete on price. Instead, Lucid Group builds premium-quality vehicles for people who can afford them. Ultimately, it’s not a great idea to back up the truck and buy too much of LCID stock. However, as long as you’re aware of the risks, holding a small share position in Lucid Group isn’t a terrible idea.
If you’re averse to volatility and risk, you’d probably be better off investing in Ford (NYSE:F). Unlike Ford, Lucid Group targets a niche group of automotive buyers who want the fanciest EVs available today.
This strategy could fail miserably, but it could also make Lucid Group a leader among high-priced new-energy vehicle manufacturers. So, if you’re ready to place a moderately sized bet on a fascinating EV startup, let’s delve into the details and see what sets Lucid Group apart from its peers.
Lucid Group Emphasizes Luxury and Range
Indirectly, a stake in Lucid stock is a bet that the economy will improve. In a more favorable economy, automotive buyers might focus less on price and more on a vehicle’s quality and appearance.
Some car fanatics might argue that Lucid Group’s Air provides the best that the U.S. EV industry has to offer. In addition to being sleek and eye-catching, Lucid’s Air Dream Edition Range sedan reportedly has an Environmental Protection Agency (EPA) rated single-charge range of 520 miles.
According to InsideEVs, “Most of the cars are somewhere between 200 and 300 miles.” Hence, a 520-mile range for the Air Dream Edition Range is quite remarkable. Perhaps it’s Lucid Group’s emphasis on quality and power that prompted The Wall Street Journal to urge drivers to give the 2023 Lucid Air Touring a second look. Maybe this also contributed to the Lucid Air being selected as the 2023 World Luxury Car of the Year in the 2023 World Car Awards.
Upcoming SUV Model Could Be a Game-Changer for LCID Stock
Don’t assume that the Air models will Lucid Group’s only notable EV offerings. Clean-energy vehicle fans will definitely want to stay tuned for the upcoming launch of Lucid’s Gravity electric SUV.
Unfortunately, you probably can’t get a Gravity vehicle yet as it’s currently being tested on “public roads throughout the U.S.” Still, Lucid stock investors should be patient as the Gravity SUV might just be the catalyst they’ve been waiting for.
Lucid Group asserts that this new vehicle will offer the “driving dynamics of a sports car, and greater electric range than any SUV on the market today.” In other words, it will basically do for electric SUVs what the Air did for electric sedans. Hopefully, the the Gravity models will be a strong seller and revenue generator for Lucid Group — though of course, this remains to be seen.
Give Lucid Stock a Try With a $100 Stake
Only time will tell whether Lucid Group succeeds in commercializing its upcoming electric SUV models. Plus, the future trajectory of Lucid stock will likely depend on the state of the U.S. economy.
Admittedly, an investment in Lucid Group is risky, and there’s no guarantee of profits. Still, it’s fine to take a chance on LCID stock with a $100 share position. The worst-case scenario is that you could lose $100. If everything goes according to plan, however, you could eventually double or triple your investment or even more.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.