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Lucid Group, Inc.

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LCID trade ideas

Lucid, PGA, and Saudi ArabiaLike many here, I read a lot about the PGA Tour merger with LIV. There was a lot of controversy around that. In general, it's interesting to see how easily Saudi Arabia turned a huge investment in a handful of golfers into a minority stake in the the entire PGA Tour. Will they try the NBA next?! Or NFL!? It's worth thinking about. But also, this is TradingView, so I wanted to look at one of their largest investments: LUCID MOTORS. At the moment, Saudi Arabia's Public Investment Fund (PIF) owns 60% of Lucid Motors, which also happens to be one of the up and coming electric vehicle companies. They are taking a more luxury route, trying to be THE premium brand in the EV space, costing 2x or 3x as much as a Tesla. Nonetheless, while I currently think this investment is underwater, I do wonder about how much money the PIF and Saudi Arabia have to invest in this. Will they make it work? If they throw enough money at it can it survive? The dilution does not look great. The losses do not look great. But if, and only if, Lucid can start delivering cars and actually hit a marketing campaign, if the product starts to stick, then maybe this has potential. There are A LOT of ifs here. I have no position. But I am watching now. It's on my watchlist. I also need to drive one... Testing it out would be the best next step. If you've ever driven a Lucid let me know.
NASDAQ:LCID
by scheplick
7
$LCID An Underrated EV PlayerPlagued with production issues and declining demand, Lucid Group, Inc. (NASDAQ: LCID) is attempting to turn around its business to compete in the EV space. In order to scale up production, LCID recently announced a $3 billion offering that would significantly dilute current shareholders. In light of this, LCID stock dropped by as much as 21% on the news. However, this sell-off may be an overreaction since the PIF is participating in the offering to maintain its stake in the EV startup. Given the PIF’s strong backing of the company, LCID stock may be a profitable buy at its current dip. LCID Fundamentals Production is the root of all of LCID’s problems with the company cutting its production guidance twice in 2022 and once in 2023 so far. As a result, LCID is unable to fulfill its reservations and the reservation waiting period is extremely long. In this way, demand for LCID’s vehicles is declining as consumers are heading to other EV manufacturers that have less waiting period for deliveries. Capital Raise Looking to improve its production capabilities, LCID recently announced a $3 billion offering where 173.5 million shares will be sold in a public offering for $1.2 billion, and 256.6 million shares will be sold to the company’s majority shareholder the PIF for $1.8 billion. Although this dilution will significantly dilute current shareholders, it might be beneficial for LCID’s long-term prospects since it would help the company ramp up production to meet demand for its vehicles. PIF Backing At the same time, this capital raise further shows the PIF’s commitment to helping LCID grow since it is not the first time the PIF provided help to the EV startup. In late 2022, the PIF contributed $915 million in a $1.5 billion capital raise to boost LCID’s cash balance. Moreover, the PIF provided LCID with a 100 thousand purchase order from the Saudi government in addition to facilitating a new facility in Saudi Arabia that would increase production by 150 thousand vehicles. Through this recent $3 billion offering, LCID would boost its already solid cash balance of $900 million along with $2 billion in short-term investments according to its latest Q1 report. Since these funds would be integral for LCID to scale its production, the sell-off on the offering announcement may be an overreaction by the market – potentially making this current dip an opportunity to add LCID stock. Another TSLA Story? It is worth noting that all EV startups have to dilute at some point to raise the capital required to scale up production. One of the most notable examples of an EV startup diluting is the EV giant Tesla, Inc. (NASDAQ: TSLA) which has diluted 13 times to reach its current position as an industry leader. When TSLA went public in 2010, the company had 110 million shares outstanding – a number which increased significantly to 3.1 billion currently. During TSLA’s long journey, TSLA stock plunged several times on dilution news, yet holding TSLA stock at the time has proven to be a profitable decision as TSLA is now the largest EV manufacturer in the world. LCID could be in a similar position currently since its main issue is production, and since this problem could be solved with the recent offering, LCID stock could be a bargain at the current PPS for long-term investors. Technical Analysis LCID stock’s trend is neutral with the stock trading in a sideways channel between $6.92 and $8.31, however, the stock broke the channel following the news of the $3 billion capital raise. Looking at the indicators, LCID is trading below the 200, 50, and 21 MAs which are bearish indications. However, the RSI is approaching oversold at 34 and the MACD is approaching a bullish crossover which might signal a run in the near term. On that note, there is a gap near $7.6 which could be filled soon. As for the fundamentals, LCID dropped 21% on the news of its $3 billion capital raise due to the dilution that would happen to current shareholders. However, it is worth noting that the PIF is participating in the offering which might indicate that the sell-off could be an overreaction given the PIF’s confidence in the company’s prospects. In light of this, LCID could be poised to rebound soon which might make the current dip an attractive entry point. LCID Forecast Although LCID stock dropped 21% after announcing its $3 billion capital raise, the current dip could be an opportunity to go long on LCID stock considering the PIF’s participation in the offering. Since this dilution would contribute to solving the company’s core issue which is production, LCID can focus on reaching profitability if it is able to successfully increase production. While dilution could be negative for shareholders in the short term, LCID’s prospects might improve significantly with the influx of cash it is set to receive.
NASDAQ:LCIDLong
by Penny_Stocks_Today
LCID Lucid Cup and Handle Short then LongFSR has formed the cup of the cup and handle pattern and is now starting the downturn formation of the handle. Price action should continue down to the 50% retracement of the uptrend of the cup. It should then reverse and trend upward to twice the height of the cup/ AO /MACD / RSI confirm the downtrend. I will target this with the $8.50 strike put options expiring 3/10 and then upon hitting the full retracement close than position and open $9.50 call options expiring 3/17. Overall, expecting 200-300% realized profit on the trades. Not at all a surprise but FSR / Fisker has the same pattern and so a similar idea.
NASDAQ:LCID
by AwesomeAvani
3
car marketso lucid is a stalon of the CAr Market with citizenship of WHO THE HELL KNOWS what: modena design for sleek, asian electical equipment to move the wheels, american heart with trading location at nasdaq, russian dupe lollicon appearance of the whole vehicle design. cars are on fire but opinions differ, razee, coal and bitter. not your ordinary CHEVY yet already and not your ordinary chrysler yet already. car worth buying, but the main is tricky as hell. so this is Lucid...
NASDAQ:LCID
by ordinary_mexican_called_jose
SOME UPSIDE FOR LCID?We see LCID break out of its descending trend, trapping long positions, only to return to not just our liquidity level of 8.21 BUT also to test our weekly high-term timeframe. with our gap formed from Feb 22, we can deduce that there is a 9/10 chance Price will return to fill the gap. If you think you've gotten awesome content from my TA, please smash that like (boost) button! It keeps me motivated to continue hitting the charts for y'all!! I'd also love to see requests on any chart you'd like me to look at! So please leave a comment on what Analysis you'd like me to do next! <333333
NASDAQ:LCIDLong
by marktiu
LUCID: MARKET MAKERS & VOLATILITYDESCRIPTION: In the chart above I have included a MACRO ANALYSIS of LUCID that focuses on RSI AND MACD behavior in past SHORT SQUEEZE scenarios along with information on current trend and supply & demand pockets. POINTS: 1. DEVIATION of 6 POINTS hence SUPPLY & DEMAND POCKETS. 2. DOWNTREND CHANNEL STILL IN PLAY UNTIL CONSOLIDATION IS CONFIRMED. RSI: When it comes to RSI notice the angle at which the last two SQUEEZES have occurred 25 & 36 DEGREES while current RSI is ANGLED at 61 DEGREES. This measure in DEGREES is important because the STEEPER the ANGLE the SHORTER THE PERIOD WILL BE THAT RSI MEDIAN WILL LINGER AT OVERBOUGHT LEVELS BEFORE RESETING & SEEING SOME COOL OFF. MACD: CRUCIAL TO POINT OUT NOTICE MACD IS CURRENTLY STILL SQUEEZING AND FAILED TO RESPOND CONFIRM CURRENT BUYING PRESSURE MEANING THERE IS STILL A LOT OF SHORTING PRESSURE. IMPORTANT: Current PRICE SQUEEZE ACTION is uncannily similar to SHORT PRICE ACTION on MAY 12 2022, when price action eventually pulled back into DOWNTREND. SCENARIO #1: In a BULLISH scenario since RSI is at OVERBOUGHT LEVELS & if price action is to head higher expect somewhat of a VOLATILE CORRECTION. SCENARIO #2: In a BEARISH scenario since MACD failed to confirm UPTREND a downward move is to be expected next possibly pushing price action down to the 10 - 4 point SUPPLY & DEMAND POCKET. FULL CHART LINK: www.tradingview.com NASDAQ:LCID
NASDAQ:LCIDShort
by DGSTBROKERACC