Lucid Motors hosted an investor call yesterday in which management provided updates on the business ahead of its impending merger with Churchill Capital (NYSE:CCIV). CCIV stock rallied into the call, but dropped soon after.
Despite , investors zeroed in on the fact that CEO Peter Rawlinson did not deliver a definitive date for said deliveries.
This vague answer didn’t please investors, who perceived it as weakness.
However, Rawlinson knows Wall Street is a stickler for deadlines. By sticking to Lucid’s prior delivery estimate range, he is refusing to give investors a deadline the company can’t meet.
This makes sense. And this is the reason we walked away from the call bullish.
With Rawlinson, you have a CEO who wishes to underpromise and overdeliver.
Or, at the very least, he doesn’t want to give Wall Street a date that Lucid Motors cannot meet with 100% certainty.
And in the grand scheme of things, whether deliveries begin in the third or fourth quarter won’t make a difference. Wall Street is just being finicky.
More importantly, Rawlinson endorsed Lucid’s five-year outlook yesterday, in which the company targets 251,000 deliveries and revenues of $23 billion by 2026.
The Bottom Line on CCIV Stock
Lucid Motors sticking to long-term targets yet failing to disclose an exact date for EV deliveries give us confidence that management’s own confidence in Lucid’s long-term outlook is strong and genuine.
And for that reason, as well as everything we’ve been praising Lucid Motors for recently, we remain bullish on the long-term growth prospects of CCIV stock.
Which is why CCIV is one of my top picks in the world of
Next-Gen Mobility. And, long-term, we believe Lucid Motors stock will score investors big returns, but it’s far from the only hypergrowth stock on my radar.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
