Recent News Adds Excitement to Lucid Motors (CCIV) Long-Term Future
The electric vehicle maker continues to plan and execute a very aggressive business plan
Lucid Motors, which is in the midst of a merger with SPAC Churchill Capital Corp IV (CCIV), is furiously working to hit the ground running as the impressive new kid on the block in the EV sector. The stock price of CCIV has been incredibly volatile as investors monitor the company’s rollout of its highly anticipated vehicle line and associated business plans. It should come as little surprise that reaching its potential will take some time, but the long-term future is looking bright for this company, especially given recent news that continues to confirm why many are so bullish on their prospects.
Lucid Motors Planning to Join Energy Storage Market: Lucid Motors was founded in 2007 under the name Atieva. Before they became a major player in the EV world, their business focus was the manufacturing of EV batteries and powertrains. While the bread and butter of their business moving forward will be their cutting-edge electric vehicles, they aren’t abandoning their roots just yet.
According to TechCrunch, it was announced this past week that Lucid Motors is planning to explore ways to recycle and capitalize on their old batteries. They will experiment with building energy storage systems that could be utilized on both commercial and residential levels. When electric batteries are removed from vehicles at the end of their life cycle, they still retain a charging capacity in the neighborhood of 70 percent. That’s a significant amount of energy that the EV company is hoping to harness and repurpose into other uses.
This is a long-term play for sure, likely even more in the future than seeing how they do with car manufacturing and sales over the next half decade or so. However, if the company, which appears to be building a solid reputation on developing cutting-edge technology, lands upon an effective way to farm the recycled battery power and can convert that to usable energy in homes and businesses, it could provide them with an entirely new dynamic.
Their success at getting vehicles out on the market should also significantly impact these efforts, as the simple logic of them having more vehicles in the hands of consumers means that as time goes by there should be more batteries to harvest once their on-road usefulness has expired. Thinking about Lucid Motors’ tech and the push for green and sustainable energy in the world, the mind can run a little wild thinking about the potential of this venture. Again, this appears to be a long-term, down the road play for the company, but one that bears paying serious attention.
Reservations for Lucid Dream Sold Out: The first vehicle line that Lucid Motors is launching this year is the Lucid Air. Bursting with eye-popping design, slick technology, and specs that seemingly put them at the front of the class when it comes to EVs, it’s little wonder that they have generated strong interest as they plan to roll out their first vehicles for sale later this year. The company is starting modestly, with projections putting them in the neighborhood of 6,000 vehicles ready for customers in 2021.
Motley Fool reported that Lucid has already sold out of their estimated 500 reservations in 2021 for their Lucid Dream Edition — the luxury vehicle for their inaugural line. With a price tag of $169,000, that equates to $84.5 million in revenue just from those vehicles alone this year.
Back in February, when the merger deal between Lucid Motors and CCIV was announced, it was confirmed that the company already had approximately 7,500 reservations for their non-Dream vehicles. These would be some combination of their Air Grand Touring ($131,500), Air Touring ($87,500) and Air Pure ($69,900). Without knowing how those reservations break down between the various models, that still places future revenue on these initial reserved cars at somewhere between $524 million and $1.2 billion. Considering that when the company is up and fully running to their expectations, which by their projections could include hundreds of thousands of vehicles annually in the coming years, their potential financials are exactly why some investors are so excited.
Plans are only worth so much when it comes to valuing and projecting the future performance of a company. Cold hard facts and results are what really drive home to investors that a commodity is worth investing in or should be avoided at all costs. Over the coming years, Lucid Motors/CCIV will have to do the proverbial act of placing their money where their mouth is. However, given the exciting and continuously growing nature of what they hope to achieve, it will be hard to wait to see what they can deliver.
DISCLAIMER: The author is not a financial advisor or expert. The opinions expressed in this article are intended for general entertainment purposes only. They are not intended in any way to provide specific advice or recommendations for any individual or on any specific security or investment product. Individual investors are responsible for their own money and investment decisions and should always do their own due diligence before investing. The author holds a small position in the holding(s) discussed in the article.
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