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Assignment

Buxton Intro to Finance 2: Period 1 8/29/2022

Analysis 01: Lucid Group

Current Pro Rating: Hold the stock

Current Price: $15.69

Forecast Price: $50.00 (long term) $12.00 (short term)

News: Lucid Group has decided to start distributing its franchise within the European electric automotive industry, it is developing into a solid competition for other EV companies such as Tesla and startups like Rivian. (Reuters 1/4/22) –

Lucid announces deal for the purchase of up to 100,00 Electric vehicles (Lucid 1)

To enhance the journey experience, Lucid plans to collaborate with Gracenote, an audio technology company that can potentially enhance Lucid’s sound system and its new entertainment system which can be used during long road trips. (Yahoo Finance 1/5/22)

Summary: Lucid is a barely new electric car company with very little credit to its name. They will continue to struggle in the electric car market with competitors like Tesla and other major car manufacturers. Its upside is being highly luxurious while having the same torque as an electric car.

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