Therefore Lucid expects to match Tesla's stupendous capacity ramp over the last five years, but for eight immaculate years. That would represent an incredible 49.5% CAGR over eight years. Lucid plans to increase its annualized production run rate from 20K by 2022 to 500K by 2030. It increased at a CAGR of 57.2% over the last five years to 804.3K in FQ3'21. In addition, the company's last-twelve-months (LTM) production run rate has increased tremendously. Giga Shanghai has played a critical role in Tesla's global expansion plans. The company also announced a 200M plan to upgrade Gigafactory Shanghai to expand its capacity. Based on current forecasts, Tesla might even double that capacity to 2M by 2023. Tesla highlighted that its annual run rate has recently crossed 1M production this year. We believe ramping up production will be Lucid's most challenging endeavor. But of course, we also plan plants in other parts of the world, the Middle East and in China. We've got a Casa Grande capacity planned out to 365,000 units. We have a plan in place to expand Casa Grande to that level. But we're planning on 500K units by the end of the decade. Right now, we're laser-focused on growing the scale towards 20K units next year, then 50K. Notably, Lucid's target is to reach 500K annually by the end of 2030, as Rawlinson emphasized (edited): Rawlinson highlighted that the company is on track to produce 20K units by 2022 and 50K by 2023, indicating a 150% YoY increase in its run rate. We believe it would significantly affect where the stock will be over the next five years as EV competition heats up worldwide. Therefore, there's a lot for Lucid to prove from here in terms of its production capability. Rawlinson's arch-rival and one-time boss Elon Musk (Lucid specifically names Tesla ( TSLA) as its competitor in its 10-Q) has often lamented the difficulties of achieving and sustaining volume production efficiently and profitably. Now, the tough part comes as it begins volume production and schedule for deliveries. Therefore, optimism surrounding LCID stock is expected. But, it has proven that its in-house powertrain and battery technology are among the best globally. We believe that Lucid is still very early in its EV market opportunity, even though it seems like a latecomer. So I think scaling up volume is well within our sights. We designed this technology to be truly mass manufacturable. And as a tech company, it's our technology, which we are confident will put us in this preeminent position. We also have plants in other parts of the world, in the Middle East and in China. It means that we will be able to provide a car, which is competitive with range, at 300 miles, 400 miles. We use that technological advance as a commercial enabler. However, Rawlinson's ultimate objective is to use its technology to foster mass adoption worldwide. The company is commencing production in the high-performance and luxury line. Lucid has certainly boosted its brand value significantly among investors and consumers. We're using our extraordinary efficiency to achieve range to create a technological tool to force to define the brand as a range king. It's a distinction that CEO Peter Rawlinson has envisioned from the start to build the " best car in the world. ( NASDAQ: LCID) has claimed the throne as the new " range king" in the US electric vehicles (EV) market. Noam Galai/Getty Images Entertainment Investment Thesis
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