Lucid Motors, a premium electric vehicle (EV) manufacturer listed on the NASDAQ as LCID, has seen a disappointing performance in its stock price for the year 2024. Despite a recent market rally, the company has struggled to compete with rivals like Tesla, resulting in a decline of over 35% in its stock price, which failed to rise above the yearly high of $4.15. As of the market close on June 12, Lucid was trading at $2.68.
While LCID shares have faced challenges, there is speculation that the stock could follow the trend of meme stocks like GameStop on the NYSE. This presents a short-term trading opportunity for speculators, with Lucid’s short interest standing at 28.31% as of June 13.
In light of the high short interest in Lucid shares, Finbold turned to OpenAI’s ChatGPT-4o to predict how the stock might behave in the event of a short squeeze. The AI tool highlighted the potential impact of social media hype and retail investor coordination, similar to what was seen with GameStop. It suggested that if Lucid experienced a meme stock frenzy, its price could increase significantly, with projections ranging from a 10x increase to around $26.40, to a 20x increase reaching approximately $52.80.
On the other hand, Wall Street analysts at TipRanks provided a more conservative outlook, offering a 12-month price target for Lucid at an average of $3.16. This represents a 19.47% increase from the current price, with a high forecast of $4 and a low estimate of $2.90.
Despite the challenging market conditions for EV companies in 2024, Lucid’s stock could see improvement if interest in EVs rebounds. The company’s strong product proposition, highlighted by the energy-efficient Lucid Air and tech-sharing partnerships with companies like Aston Martin, could drive future growth. Additionally, Lucid’s partnership with Saudi Arabia for car production and potential orders of up to 100,000 vehicles, backed by the nation’s sovereign wealth fund, could further boost its deliveries and overall performance.
