Easy EV Stock to Invest in at the Moment without Deliberation
Every investor yearns for the next big thing, akin to the staggering success of Tesla (NASDAQ: TSLA). That's simpler said than done. Since its IPO, Tesla's share price has skyrocketed over 27,000%, with its market value exceeding a trillion dollars. Those patient investors who held on through the volatility have reaped massive profits. Yet, while Tesla was soaring, countless electric vehicle (EV) manufacturers failed to keep up, succumbing to bankruptcy, such as Fisker Inc. and Lordstown Motors.
If you're on the hunt for the next Tesla, it calls for finding an EV stock with specific traits. Currently, there's one electric car company showing all the right signals.
The Roadmap for EV Dominance
In 2006, Elon Musk outlined Tesla's blueprint for long-term growth in his "Master Plan." "As you know, the initial product of Tesla Motors is a high-performance electric sports car called the Tesla Roadster," Musk wrote. "However, some readers may not be aware of the fact that our long-term plan is to build a wide range of models, including affordably priced family cars."
Fast-forward to today, and Tesla's growth strategy appears as clear as day. The company has successfully transitioned from offering a single luxury sports car to a selection of both luxury and mass-market vehicles. But in 2006, Tesla's shift towards affordability wasn't so apparent.
"Are we really in need of another high-performance sports car?" Musk mused. Of course not, but the intention behind the statement was to shed light on Tesla's approach to saturate the luxury market and then use that momentum to launch more affordable vehicles for the masses. Thus, Musk's "Master Plan" was laid out in three straightforward points:
- Create a luxury sports car.
- Utilize the profits to introduce an affordable car.
- Use that revenue to unveil an even more affordable car.
Tesla executed this growth strategy flawlessly. And now, one EV manufacturer is following suit.
Lucid Group: The Next Elon Musk Protégé?
While Tesla's valuation towers above the competition, many investors remain oblivious to Lucid Group's (LCID -7.55%) existence. Given Lucid's valuation is 99% lower than Tesla's, it's understandable. But when it comes to mimicking Tesla's master plan for growth, Lucid is treading the right path.
Last year, the company only offered one luxury model: the Lucid Air sedan, priced upwards of $100,000 with certain options. This vehicle is similar to Tesla's Model S, catering to the higher end of the market. However, now, Lucid has also started shipping its Gravity SUV platform to customers, a luxury vehicle similar to Tesla's Model X. Despite its high-end price and luxury features, Lucid is quickly expanding its lineup. Analysts anticipate revenue to nearly double by 2025.
Moreover, similar to Tesla, Lucid is utilizing its momentum to launch multiple mass-market vehicles targeted at everyday car buyers with price points under $50,000 — mirroring both the Model Y and Model 3 from Tesla.
Can Lucid pull off a Tesla-like growth spree? There's a long way to go, with critical funding and manufacturing milestones still unchecked. But Lucid is putting all the right pieces in the right places. For growth-oriented, risk-tolerant investors, Lucid Group stock seems like an intriguing opportunity.
- Investors seeking the next Tesla-like success might want to consider Lucid Group, as its growth strategy mirrors Tesla's, starting with luxury vehicles and expanding into the mass market.
- Despite having a valuation significantly lower than Tesla's, Lucid Group is following in Tesla's footsteps by introducing a luxury vehicle, the Lucid Air sedan, and now also providing a more affordable Gravity SUV.
- The valuation of Lucid Group is currently much lower than Tesla's, offering a potential investment opportunity for those willing to take risk and aiming for significant growth.
- Embarking on a similar growth plan as Tesla, Lucid Group is expected to nearly double its revenue by 2025, introducing multiple mass-market vehicles at price points comparable to the Model Y and Model 3 from Tesla.
