Should You Buy Lucid Stock Instead of Tesla?

With shares down by a staggering 92% from an all-time high of $58 reached in early 2021, Lucid Motors' (NASDAQ: LCID) stock has been a poor bet for its early shareholders. And that's especially compared to the electric vehicle (EV) industry leader , which has risen 121% in 2023 alone. But with Tesla's valuation getting uncomfortably high, it makes sense for investors to shop around for potential deals in the market. Let's explore whether or not Lucid is finally worth a buy.

Founded by former Tesla executives in 2007 before hitting the market through a SPAC merger in 2021, Lucid was once considered a viable competitor to the current market leader. Compared to Tesla's Model S, its flagship Sedan, the Lucid Air, offers more speed, range, and an arguably more traditionally luxurious design. But unfortunately for Lucid, these advantages have not materialized into sustainable shareholder value.

The problem has worsened in the near term because of macroeconomic challenges like high interest rates, which make it harder for consumers to finance their car purchases. Lucid's revenue fell 29% year over year to $137.8 million because of lower production and deliveries.

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Source Fool.com