Electric vehicle maker Lucid Group (NASDAQ:LCID) is mulling an entry into the Chinese market, but it has not yet set a timeline for this move, according to an interview with the company’s Chief Engineer, Eric Bach, by CNBC.
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This development comes after Lucid onboarded Zhu Jiang, a former executive at Nio (NYSE:NIO), one of the largest EV makers in China. China is one of the most lucrative EV markets globally for automotive companies.
The Chinese EV market remains highly competitive, with major players such as Nio, Tesla (NASDAQ:TSLA), BYD, XPeng (NYSE:XPEV), and Li Auto (NASDAQ:LI) engaged in a price war for quite some time now. Lucid itself has been experiencing widening losses, and its share price has plummeted by 58% over the past year. Amid this dynamic, the company already has a team in China that is evaluating a potential entry and assessing the viability of such a move.
Additionally, Lucid has recently expanded its factory space in Arizona by nearly 400% and is in the middle of launching its Gravity SUV. While Lucid currently provides higher-priced models, it is also looking to introduce mass-market models as well. The company aims to introduce a mid-sized vehicle by 2026.
Overall, the Street has a consensus price target of $7.36 for Lucid, alongside a Hold consensus rating.
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