Lucid CEO says the EV start-up could eventually be valued like Tesla: ‘The sky’s the limit’

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  • Lucid CEO Peter Rawlinson believes there is a long runway for the stock and market cap of EV start-ups to surpass traditional automakers and become more valuable like industry leader Tesla.
  • The Lucid’s market cap of about $73 billion is approaching that of Ford’s $79.4 billion, but is still well below Tesla, which grew more than $1 trillion this year.
  • Rollinson, an ex-Tesla executive, regularly compares Lucid to its former employer in terms of in-house technologies and the overall development of electric vehicles.

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Lucid Group CEO Peter Rawlinson believes there is a long runway for the stock and market value of electric vehicle start-ups to surpass traditional automakers and eventually become more valuable like industry leader Tesla.

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Rollinson, an ex-Tesla executive, regularly compares Lucid to its former employer in terms of in-house technologies and the overall development of electric vehicles. He and CFO Sherry House both said Wednesday that the company’s recent run-up is proof that Wall Street is already seeing Lucid more like Tesla than a traditional automaker.

Shares of the company jumped more than 11% just before the market opened on Tuesday.

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“I think the sky’s the limit in terms of valuation, but it’s all about execution,” he told CNBC during an interview Monday night after Lucid reported its first quarter financial results as a public company. Told. “It’s about execution, it’s about increasing volume. And that’s my focus. And I think that results in the stock price being explored.”

Lucid’s stock price has risen more than 80% since it went public through the SPAC deal in July. That’s down from its 52-week high of about $65 per share in February, when it was reported that Lucid was close to a deal.

The Lucid’s market cap of about $79 billion is approaching that of Ford Motor’s $80 billion, but still well below Tesla, which turned over $1 trillion this year. Rivian, an EV start-up that went public last week, has a market capitalization of about $140 billion.

“I feel great about our share price,” House told CNBC during a joint interview. “The run-up that we have, where is it today and the growth trajectory too, clearly, that’s ahead of us. I see that we’re being treated as a technology company that’s in a lot of vehicles. Is extensible. Variant and sustainable technology.”

Lucid’s first vehicle was called the Air Sedan. It began delivering a $169,000 “dream version” of the flagship car to customers in late October, after commercial production began a month earlier at a new factory in Casa Grande, Arizona. The car has an industry-leading range of 520 miles.

Rollinson’s goal with the Air, which he believed had been accomplished, was to make “the best car in the world”. The Air was named Motortrend’s Car of the Year on Monday, a prestigious award in the automotive industry.

“I think the world believes we have an amazing product,” Rawlinson said. “I think everyone knows what I was promising would be the best car in the world. It’s true. It happened.”

Lucid is one of the few EV start-up companies to go public since last year through deals with so-called SPAC. But unlike some of its SPAC peers, Lucid is actually generating revenue and producing vehicles. It has so far avoided any federal investigation into potentially misleading statements to investors, unlike others such as Nikola, Lordstown Motors and Canoo.

The young company is not profitable yet and is still in the early days of generating revenue. The automaker’s revenue in the third quarter was $232,000, mainly from a battery deal with the Formula E Electric Racing League. It 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 expected to produce 20,000 Lucid air sedans in 2022, generating more than $2.2 billion in revenue. Rollinson confirmed the production target on Monday, but cautioned the “target is not without risk” due to the ongoing global disruption in automotive supply chains.

The company also told investors on Monday that it has more than 17,000 reservations for its air sedans, up from 13,000 during the third quarter.

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