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Lucid (LCID) stock price climbs on reservations gain

By Monte Stewart


Lucid Air
Lucid Air EV sedan is gaining in popularity, says the company CEO - Photo: Lucid

US startup electric-vehicle maker Lucid Motors' stock price increased more than 5% in after-hours trading Monday on a reservations gain.

Lucid, which went public through a merger with a special-purpose acquisition company (SPAC) on the Nasdaq Global Select Market in July, has increased its reservation count to 17,000 currently after boosting it to 13,000 in the third quarter, the company said in its earnings report. Meanwhile, the company is on track to meet its EV production target.

Target not without risks

“We remain confident in our ability to achieve 20,000 units in 2022,” said CEO and chief technical officer Peter Rawlinson in a news release accompanying the earnings report. “This target is not without risk given ongoing challenges facing the automotive industry, with global disruptions to supply chains and logistics. We are taking steps to mitigate these challenges, however, and look forward to the launch of the Grand Touring, Touring, and Pure versions of Lucid Air through 2022.”

On Monday, the Air sedan was named MotorTrend magazine’s car of the year.

Expanding to Europe and Middle East

On a conference call with analysts, Rawlinson said the company plans to expand its footprint in Europe and the Middle East in 2022.

“We’re extremely excited about the prospects of these two regions,” Rawlinson said.


0.63 Price
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Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
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+1.760% 1D Chg, %
Long position overnight fee -0.0193%
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Overnight fee time 22:00 (UTC)
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39,783.75 Price
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Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00


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+0.470% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0

The company has opened a studio and service centre in Vancouver, British Columbia and is slated to open another Canadian location in Toronto in 2022. More North American locations are also planned, he said.

Rawlinson said Lucid Air’s recent media exposure has resulted in “an accelerated pace” of new reservations. The company, he added, expects the company’s luxury EV market to increase 5% over the next few years.

Company has $4.8 billion in cash

The company did not provide a breakdown of vehicle-relative revenues because deliveries from its Casa Grande, Arizona plant only commenced 30 October, said CFO Sherry House on the conference call.

Lucid reported having $4.4bn cash on hand at the end of the third quarter. House said the company bolstered its balance sheet to $4.8bn in cash through the closing of its merger with the SPAC and $173m in exercised public warrants.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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