People test the Dream Edition P and Dream Edition R electric vehicles at Lucid Motors’ plant in Casa Grande, Arizona on September 28, 2021.
Caitlin O’Hara | Reuters
Lucid Group’s market value surpassed Ford Motor’s $ 89.9bn level on Tuesday after a 24% rise in the electric car startup’s stock value after executives told investors that reservations for its first cars had skyrocketed and that its production plans for 2022 are still being executed.
The skyrocketing share price has also pushed Lucid closer to overshadowing General Motors, which has a $ 90.9 billion market capitalization. Lucid shares closed on Tuesday at $ 55.52 a share. GM shares closed on Tuesday at $ 62.61 a share, down less than 1%.
CEO Peter Rawlinson said in a telephone interview Monday night that he believes there is a long runway for the stock and market value of an electric vehicle startup that will grow beyond the legacy of carmakers and ultimately be valued more than industry leader Tesla. …
Rawlinson, a former Tesla executive, regularly compares Lucid to his former employer in terms of internal technology and overall EV development. On Monday, he and Sherry House’s chief financial officer said the company’s recent increase in inventories is proof that Wall Street already sees Lucid more like a Tesla than a traditional automaker.
“I think there is no limit in terms of valuation, but it’s all about performance,” Rawlinson told CNBC on Monday night after Lucid announced its first quarterly financial results as a public company. “It’s all about performance, it’s all about increasing volume. And that’s my goal. And I think the search for stock prices is the result. “
Since the company went public with the SPAC deal in July, Lucid’s share price has risen more than 80% by Monday close. It remains below its 52-week high of nearly $ 65 a share in February when it was revealed that Lucid was approaching a deal.
Lucid’s market cap is still well below Tesla, which has surged to over $ 1 trillion this year. Rivian, an electric car startup that went public last week, has a market cap of around $ 140 billion.
“I am great about our share price,” House told CNBC during a joint interview. “The takeoff we had, where it is today, and the growth trajectory, frankly, is ahead of us. I see we are being viewed as a technology company with a platform that is expanding to a variety of vehicle options and sustainable technologies. “
The first Lucid car is called the Air sedan. In late October, the company began shipping its $ 169,000 Dream Edition flagship vehicle to customers after commercial production began a month earlier at a new plant in Casa Grande, Arizona. The vehicle boasts an industry leading 520-mile range.
Peter Rawlinson joined Lucid Motors in 2013 as CTO, a role he has retained since he was named CEO in April 2019.
Rawlinson said his goal with Air, which he believed was achieved, was to make “the best car in the world.” On Monday, Air was named MotorTrend Car of the Year, a coveted award in the auto industry.
“I think the world will recognize that we have an amazing product,” Rawlinson said. “I think everyone understands that what I promised will be the best car in the world. This is true. This happened”.
Lucid is one of the few start-up electric vehicle companies to go public since last year through deals with the so-called SPAC. But unlike some of its SPAC competitors, Lucid actually generates revenue and makes cars. He has also so far avoided any federal investigations into potentially misleading investor statements, unlike other companies such as Nikola, Lordstown Motors and Canoo.
The young company is not yet profitable and is just starting to make a profit. The automaker’s third-quarter revenue was $ 232,000, driven mainly by its battery deal with the Formula E racing league. The company reported a net loss of $ 1.5 billion in the first nine months of the year, including a loss of $ 524.4 million. in the third quarter.
Lucid told investors in July that it plans to produce 20,000 Lucid Air sedans in 2022, generating more than $ 2.2 billion in revenue. Rawlinson reiterated the production target on Monday, but warned that the target is “at risk” due to ongoing global disruptions to the auto supply chain.
The company also told investors on Monday that it has more than 17,000 orders for the Air sedan, up from 13,000 in the third quarter.
The interior of the Lucid Air show car, expected to be produced in 2021.