1 Reason Wall Street Is Obsessed With Lucid Group Stock

Lucid Group (NASDAQ: LCID) stock soared 40% in value when the company announced its robotaxi partnership with Uber Technologies last month. The deal is transformative, with Uber agreeing to purchase 20,000 vehicles from Lucid as well as infuse $300 million in fresh cash into the business. While not all Wall Street analysts loved the move, many were exuberant. In early August, several experts reiterated their price targets for Lucid stock, expecting anywhere between 45% and 240% in potential upside. Why the optimism? Analysts are likely excited about one key pillar of growth.Manufacturing vehicles, like Lucid currently does, is capital intensive. On the other hand, Uber operates a capital-light business. The ride-hailing company typically doesn't need to own the millions of vehicles it needs to operate its network. Most of its business is simply the software that connects cars that other people already own and pay for. Lucid, meanwhile, needs to manufacture new cars to generate new revenue -- requiring a never-ending stream of fresh capital.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool