Churchill Capital has experienced a chaotic past few weeks. After the company said it would be combining forces with Lucid Motors to bring the company public, chaotic trading ensued to push the stock to almost $65. The stock then came tumbling down after the deal’s details were made pubic to traders and investors.
With shares currently moving around $20 to $25 over these past days, here’s how Lucid Motors might end up doubling your money.
To justify such a price, Lucid would need to do a few things.
In addition to beginning Air production, it must increase its manufacturing to execute on its growth forecast, which is not an easy task. The good news is company leaders are already laying the groundwork, recently getting approval for the another phase of its factory in Arizona from local zoning authorities.
The first phase, which is already done, is expected to have a capacity of nearly 34,000 units a year. The second phase will increase that number to 90,000, which is the number of vehicles Lucid hopes to sell in 2024, generating around $9.9 billion in revenue.
Furthermore, Lucid must ensure it can create the type of quality that customers expect from a $170,000 product, while confirming its shocking claims — more than 500 miles range, the ability to get a 300 mile charge in just 20 minutes with fast charging, and industry-topping efficiency that beats even Tesla — with real-world experience and data.
If Lucid can do all of this, it will mean future growth opportunities in other businesses like stationary storage and becoming an electric vehicle tech supplier for other industries such as aviation or agriculture. It will not be easy, but Lucid has a great chance of becoming an electric vehicle powerhouse, allowing its stock to double in the years ahead.