Lucid Dreams
Everyone knows that the king of cars is Ford. The company is named after their founder, Henry Ford, who revolutionized the assembly line and defined automaking in the United States, and they have been one of the top car companies in the world ever since. Outproducing all but 4 companies globally, you will probably see a regular Ford F-150 on the road as soon as you enter the highway.
However, the theme of this past year has been to expect the unexpected, and that holds true still. Even with Ford making a major comeback in 2021, its stock price reaching levels that haven’t been achieved since the late 90s, it’s being overtaken by electric vehicle companies that have just arrived in the market. Enter Lucid Motors, a California-based EV company that entered the stock market in early 2021 through a SPAC. Recently, they released their first financial results since entering the market, and investors loved it. The company said that they saw a major increase in reservations for the Lucid Air, their first model, and that outlook was positive. As a result, Lucid is now more valuable than Ford, something that most people wouldn’t have ever imagined. Lucid isn’t the only one flying high; Rivian Automotive, another EV company, entered the market last week via IPO, and they are now more valuable than Ford and GM. Analysts are questioning this, though, saying that the examples of Rivian and Lucid show how much trouble the market is in right now as these investments are all based on speculation about clean energy vehicles and no current results. It’s possible that these companies can flourish, but it’s time to watch out for Ford too as they might be a sleeper in the EV race. What do you think about Lucid and Rivian’s rise?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
