The Saudi government announced a Green Initiative which is why Lucid might have chosen to stray off of the beaten path of expansion in Asia and Europe that other EV companies undertook. Certainly, the high luxury vehicles produced by the company will find willing buyers among the Saudi rich class.
Hype is over but there is still potential
In October 2021 the stock started its path towards stardom as an announcement was made that customer deliveries will take place. After November 2021 highs the stock slowly traded down, but there is certainly long-term potential as the LCID seems undervalued when compared to its competitors. As the stock is currently down below the projected $20 resistance line and far below all daily Simple Moving Averages a good option for investors looking to jump in would be to wait. If the stock bounces and goes above the $21 level it might continue rising. Volumes in recent sessions indicate that explosive moves are not likely, but keeping an eye on the shares will enable market participants to pounce at the right opportunity. Analysts are still keeping the same rating of a moderate buy since the last time Finbold reported on the stock. If the stock reaches the predicted average price for the next 12 months analysts have, at $40.50 the stock would see a 107.16% surge from the current trading price of $19.55. With a billion-dollar sales opportunity in Saudi Arabia and a strong recent partnership, the shares should potentially be trading higher. Riskier stocks are out of favor now with rising inflation and possible economic tightening that will take place. Investors would be well advised to also take a “wait and see” approach to high-growth companies. If the goal is to stay long-term in the stock there will certainly be benefits to waiting and entering if the price continues to go down. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
