Two Price-Beaten But Promising EV Stocks: FSR + LCID
Shares of $FSR are down about 45% this year. Yet, operationally, two factors continue to work in the EV-maker’s favor.

First, despite supply chain issues and chip shortages around the world, Fisker remains on track to commence production of the Ocean, its inaugural all-EV model, on November 18. (It rolled out the first model from Magna’s high-volume line on Wednesday.)

Second, even though vehicle sales have slowed globally, preorders for the Ocean have not — there are now 56,000+ preorders for the Ocean, including 5,000+ reservations of the Ocean One launch edition. Preorders of the former cost $250, while the latter costs $5,000 (and it hasn’t even been unveiled yet).

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Shares of $LCID are down nearly 60% in 2022.

Like the Fisker Ocean, the Lucid Air is in high demand with 37,000+ reservations through the beginning of August, which equates to about $3.5 billion of potential sales.
Unlike the Ocean, production of the Air has already commenced — but logistical struggles and broader supply chain issues forced the company to slash its 2022 production guidance range from 12,000–14,000 to 6,000–7,000.

Assuming the company can fix its logistical pains and navigate macroeconomic conditions in the near term (two big assumptions), it’ll have no problem meeting demand.

Currently, Lucid’s Arizona-based production facility has the ability to push out 34,000 models of the Air per year. Once phase two of the facility’s expansion project is completed (est. early 2023), the company’s production capacity will jump to 90,000 models of the Air and Gravity (its upcoming electric SUV). Moreover, Lucid recently broke ground on a Saudi Arabian factory that’s expected to be capable of producing 155,000 models.


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Originally published via the Due Diligence newsletter.
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