Stock of Lucid experiencing significant growth -- Is it worth investing currently?

Lucid Group's stock has experienced a significant boost today, trading at $18.39, a change of 13.83%. This surge comes after Cantor Fitzgerald published new coverage on the electric vehicle company, raising its one-year target from $3 per share to $20 per share.

The average volume of Lucid Group's stock today is 33,386,947, a significant increase from the usual 13,810,644. However, it's worth noting that the day's range for the stock remains the same as previously stated, between $16.34 and $18.73.

The stock's current trading price doesn't tell the whole story, as Lucid's Q2 results showed a loss of approximately $739.26 million on sales of $259.4 million. This large loss may be less concerning due to Saudi Arabia's Public Investment Fund (PIF)'s heavy investment and support, but it also poses a risk of continued stock sales to PIF, affecting other shareholders.

PIF, the main capital provider for Lucid Group, has regularly injected capital into the company. As Lucid's majority stakeholder, their ongoing support is crucial for the company's long-term growth.

Another factor to consider is Lucid's gross margin, which stands at -99.26%. This is a significant loss, but it's important to note that the company underwent a 1-for-10 reverse stock split, effective on Aug. 29 and first traded under the new structure on Sept. 2.

Despite the big gains today, Cantor's new valuation target for Lucid still implies an upside of roughly 10%. This suggests that there is still room for the stock to grow, given the positive outlook from investment firms like Cantor Fitzgerald.

Lucid closed Q2 with cash and equivalents totaling approximately $1.8 billion, providing a strong financial foundation for the company as it continues to develop and produce its electric vehicles. However, the company's large losses and reliance on PIF's capital injections could potentially impact long-term shareholder performance.

The 52-week range for Lucid Group's stock remains the same as previously stated, between $15.25 and $40.80. This range provides a broad perspective on the stock's performance over the past year, highlighting both the significant gains and losses the company has experienced.

In conclusion, while Lucid Group's stock has seen a significant boost today, it's important for investors to consider the company's financial performance, reliance on PIF, and potential impact on long-term shareholder performance before making investment decisions.

Stock of Lucid experiencing significant growth -- Is it worth investing currently?