This is because interest rates are in the denominator of the widely used discounted cash-flow (DCF) model. With the threat of an inevitable interest rate hike, Lucid’s future cash-flows will be reduced when discounted to the present value. So, the big question is: Can Lucid’s reservations and future cash flows justify its sky-high market capitalization? Based on Lucid’s recent performance, it doesn’t seem like it.Ģ022 is a completely different macroeconomic environment than 2021. However, Lucid currently has 17,000 reservations for its Lucid Air model, which represents a book value of $1.3 billion.

In addition, Powell reinforced his opinion that “there’s quite a bit of room to raise interest rates without threatening the labor market.”ĭuring Q3, Lucid reported $232,000 in revenue on top of a $524.4 million loss.

Powell admitted that inflation is well above the Fed’s long-term goal of 2%. However, the Fed did release a statement hinting that it is preparing to r educe the amount of asset holdings.ĭuring the meeting, Fed Chair Jerome Powell spoke in a hawkish and cautious tone. In addition, the Fed did not announce when it would reduce its bond holdings. In February, the Fed is expected to purchase $30 billion of bonds, which indicates that its purchases will likely stop in March. While the Fed did not confirm a hike in March, it did announce further asset tapering. The Fed hinted yesterday during the Federal Open Market Committee (FOMC) meeting that an interest rate hike could come as soon as March. Now, the Federal Reserve is tightening its grasp on monetary policy. However, interest rates were also extremely low during 2021, with no set timetable for a hike. EV stocks gained reputability last year, backed by rising delivery figures and government support. Lucid has had a slow start to the new year after surging 280% in 2021. Schneider / Shutterstock LCID Stock Falls More Than 25% YTD What we mean to say it will be worth above 60 Billion USD in the next 12 months, if the delivery of vehicle with 500 miles per charge can be delivered in October-2021.Source: T. If Lucid Motors is able to deliver electric vehicles with 500 miles mileage in October-2021 then there is high possibility that the stock price gains over 50% in the next 1 year from 40 Billion USD. By 2023 there will be many players in electric vehicle manufacturing. This is the beauty of getting money in 2021, 20. They will get money even by selling credits to the non electric vehicle manufacturers apart from selling their manufactured electric vehicles. Whoever manufactures electric vehicles in 2021, 20 will be a golden period for them. Peter Rawlinson is CEO of Lucid Motors and he is one of the core members in Tesla prior to joining Lucid Motors as CEO.Įven mileage number of Lucid are looking as 500 miles which is above Tesla vehicle mileage range of around 420 miles. Lucid Motors CEO is key player in Tesla in manufacturing Model-S. Lucid Motors stock price soars over 8% with the news it is starting delivery of electric vehicles of brand Lucid Air Dream Edition from October-2021. World Top 50 Companies Quarterly Results.Australia Top 50 Companies Annual Results.

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