Can Lucid Challenge Tesla’s EV Dominance?

The acknowledge is also hidden in batteries.

Rekha Khandelwal

Key Components

  • Lucid vehicles offer industry-leading EV technology ethical now.
  • Tesla’s battery enhancements could perchance wait on pork up the vary of its vehicles by as critical as 54%.
  • Treasure Tesla, Lucid plans to launch decrease-priced EV models about a years down the line.

The electrical car industry is evolving at a fast tempo. Diverse current gamers are entering the market, and now not all are inclined to be triumphant. Then again, Lucid Community (NASDAQ:LCID) has been worthwhile at establishing itself as a solid contender in this competitive house.

Let’s gawk at how Lucid Community is difficult Tesla‘s (NASDAQ:TSLA) electrical car technology. More importantly, can it will definitely field Tesla’s dominance in the EV house?

Lucid’s industry-leading EV technology

To note why Lucid is grabbing headlines and awards nowadays, it is miles helpful to compare Lucid’s technology with that of Tesla. To commence with, the Lucid Air Dream Edition affords a vary of bigger than 500 miles. That’s 100 miles bigger than Tesla’s Model S, which used to be so far the longest-vary EV model on hand. By comparability, Volkswagen‘s upcoming model ID.5 will offer a vary of round 320 miles. Toyota Motor‘s all-electrical SUV bZ4X, which is able to come to market in 2023, will relish a vary of round 310 miles. Clearly, Lucid Air is a winner in phrases of vary.

A lucid air driving on a highway through the desert.

Image provide: Lucid Community.

Then again, there are different components to accumulate into yarn. Longer vary will be finished by, relate, utilizing a bigger battery pack. Nonetheless that is now not optimum or groundbreaking. A key measure of EV technology is battery effectivity, which tells how critical electrical energy a car makes use of to commute a particular distance. Lucid Air boasts a battery effectivity of bigger than 4.5 miles per kilowatt hour, better than Model S’ 4 miles/kWh. 

Notably, Lucid Air’s top tempo of 168 miles per hour is now not up to Model S Plaid’s top tempo of 200 mph. Equally, Model S Plaid takes roughly 0.5 seconds now not up to Lucid Air to be triumphant in a tempo of 60 mph after commence. Restful, Lucid Air affords for far longer vary without materially compromising on efficiency.

Is Lucid a probability for Tesla?

Frankly, Lucid will need loads bigger than promising technology to field Tesla’s EV dominance. From sourcing raw affords to producing vehicles that effect effectively in the exact world over time — and doing all that profitably — Lucid has loads to relate. Yet, its better technology could perchance give it some edge.

Lucid’s success is laudable alive to in that it has beaten legacy car companies in handing over a bigger product, even when these companies relish been spending billions of greenbacks on their EV ambitions. It is generally attempting to field an established EV maker that has a recognition for innovation.

Young man over isolated background looking confused, thinking with hand on head.

Image provide: Getty Photos.

Or now not it is correct the beginning

Based utterly fully on the above, it is miles perchance now not prudent to bounce to the conclusion that Lucid can without problems field Tesla. Tesla is now not sitting on its laurels, and it is working on bettering its batteries consistently. At its Battery Day occasion closing year, Tesla stated that its relish batteries could perchance enlarge car vary by 54%, due to the cell develop as well to cell car integration. On the firm’s third-quarter earnings call, administration advised that Tesla will commence handing over vehicles with 4680 cells (developed by Panasonic) by early 2022. 

The firm hasn’t supplied an replace on how critical vary and effectivity enchancment will be anticipated utilizing the 4680 cells. Nonetheless over time, Tesla is inquiring for 54% enchancment in vary via enhancements in cell develop and integration.

Furthermore, Tesla’s relish wide battery production plans goal to minimize battery prices seriously. The firm believes that this would wait on it carry EVs for as runt as $25,000. Total, Tesla is targeting a substantial bigger market than Lucid ethical now. Lucid also in the end plans to faucet the mass market, but that is mute years away.

Lucid stock makes a difficult bewitch

Total, Lucid could perchance witness its lead in vary like a flash erode unless it continues to pork up its choices. Lucid and Tesla could perchance effectively be first and important of a protracted-time interval rivalry. That’s for sure correct info for EV investors. Nonetheless what does it point out for you as an investor? To me, each and each Tesla and Lucid gawk like solid long-time interval buys. Then again, Tesla stock already appears priced for perfection, whereas Lucid appears to be like to relish more room to flee.

This article represents the design of the author, who could perchance disagree with the “legitimate” recommendation effect of a Motley Fool premium advisory provider. We’re motley! Questioning an investing thesis — even one in every of our relish — helps us all mediate critically about investing and invent selections that wait on us changed into smarter, happier, and richer.

Rekha Khandelwal has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla and Volkswagen AG. The Motley Fool has a disclosure policy.”>

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