Lucid is the ‘Tesla/Ferrari’ of electric vehicles, B. of A. says

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Lucid Group Inc. banal got a bargain standing from analysts astatine Bank of America, who connected Wednesday said Lucid is the “Tesla/Ferrari” of electrical vehicles and is taking vantage of lessons learned by the different 2 luxury car makers.

The analysts, led by John Murphy, praised Lucid’s LCID, +5.01% absorption team, its “key competitory advantages” specified arsenic its Formula E technology, and its “interesting/attractive” product, the Lucid Air ultra-luxury sedan.

See also: Chasing Tesla: Here are the existent electrical conveyance plans of each large car maker

“Although this does not mean implicit avoidance of the obstacles galore EV start-ups person endured from conception to commercialization, we delegate overmuch much credibility to (Lucid’s) occurrence successful this endeavor,” the analysts said.

Lucid shares roseate much than 4% connected Wednesday, erasing immoderate of their losses from earlier successful the week, including a driblet connected Tuesday aft analysts astatine Morgan Stanley initiated their sum connected the banal with the equivalent of a merchantability rating.

Morgan Stanley said that Lucid was a “super premium” electric-vehicle shaper that whitethorn beryllium capable to standard its production, but there’s conscionable excessively overmuch contention to get excessively excited astir the banal for now.

Lucid shares started trading connected the Nasdaq successful July aft the company’s merger with a blank-check institution was approved connected a 2nd effort a fewer days earlier. Lucid said astatine the clip that it had $4.4 cardinal successful backing and would beryllium capable to “significantly” accelerate its program to present “the world’s champion EVs.”

The Newark, Calif., institution hopes to commencement selling the Lucid Air, built astatine Lucid’s mill successful Arizona, successful the 2nd fractional of this year. The car is expect to merchantability for astir $77,000.

The B. of A. analysts acceptable a $30 terms people connected Lucid, which represents an upside of 52% implicit Wednesday prices.

Lucid shares person astir doubled this year, compared with gains of astir 19% for the S&P 500 index. SPX, +0.83%

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