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Lucid Group’s Production Growth Could Spark a Rally by LCID Stock

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Through advanced technologies and sleek aesthetics, California-based electric vehicle (EV) manufacturer Lucid Group (NASDAQ:LCID) seeks to disrupt the automotive market as we know it. Folks with a tolerance for risk can start a small position in LCID stock. If Lucid’s ambitious vision is successful, these positions will be profitable.

The Lucid Motors (LCID) Plant in Arizona.
The Lucid Motors (LCID) Plant in Arizona.

Source: Around the World Photos / Shutterstock.com

After a prolonged wait, Lucid’s investors are witnessing the company transition into the delivery phase. With more than $1.3 billion of estimated bookings, Lucid finally started producing EVs in September and began deliveries on Oct. 30.

Lucid’s production of EVs for its customers began at the company’s vast, Arizona-based Advanced Manufacturing Plant. However, Lucid apparently plans to build another production plant, and it will not be located anywhere near Arizona. In fact, the plant won’t even be in the United States.

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Meanwhile, as we’ll see, LCID stock has been choppy Still, with one prominent analyst preparing for Lucid’s vehicle-production to surge tremendously in the coming years. the shares’ jailbreak moment could be powerful when it happens.

A Closer Look at LCID Stock

I’ve said it before, and I’ll say it again. That $60 resistance level is the price point to watch for those who have invested in Lucid.

It’s frustrating to watch LCID stock fall after each of its mini-rallies. In February of last year, and then three separate times in November, the shares came close to clearing the $60 hurdle but were always rejected.

Sure, rejection can hurt, but it’s no reason to give up on the stock. Remember that the Nasdaq, where Lucid trades, did not perform very well in December and much of January.

In other words, the lackluster performance of LCID stock isn’t entirely the company’s fault. Also worth noting is a report from InvestorPlace contributor Eddie Pan, observing that the lockup period for the legacy shareholders of Lucid had expired on Jan. 19.

Some folks might have expected a deep selloff after that event, but nothing terrible transpired. It just goes to show that the market’s fears are often worse than what actually happens.

New Plant, New Vision

Lucid’s Advanced Manufacturing Plant in Arizona, while impressive, could just be the first phase of the company’s invasion of the international EV market.

Indeed, Lucid reportedly plans to build a production plant in Saudi Arabia in 2025 or 2026. That makes perfect sense, since Lucid’s largest shareholder is Saudi Arabia’s sovereign wealth fund, known as the Public Investment Fund.