Over the past few months, a host of prospects have emerged in the electric vehicle (EV) space, which have each routinely garnered the question: ‘do they pose a threat to dethrone Tesla (TSLA)?
But there’s a new name generating a lot of buzz on Wall Street, that has investors itching for its eventual IPO debut, likley in the second quarter of 2021. After weeks of speculation, Lucid Motors announced a merger with the SPAC, Churchill Capital IV (CCIV) earlier this week.
Lucid Motors focuses on the premium segment of the EV market, with its Lucid Air Pure model starting at $69,900 and reaching up to $161,500 for the limited-edition Lucid Air Dream. The company claims a range of over 400 miles for the Air Pure model and 500 miles for the Dream on a single charge. By comparison, Tesla’s Model S Long Range, which is priced at $74,900 and offers a range of 412 miles.
While the outlook for EV stocks is largely positive, there are seem to be concerns about the valuation up and down Wall Street. In a presentation announcing the merger, Lucid executives made comparisons to Tesla, which has been well establish in the EV market and whose deliveries are growing at a rapid pace, while being sustainably profitable now. Lucid will need to step up its efforts in autonomous driving to compete with Tesla.
While it’s only natural for every EV maker to compare and benchmark themselves against Tesla, not every EV company will become the next Tesla. The company can certainly wish to dream, but it is by no means Tesla right now. Not even close.