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Lucid vs. Tesla – Why You Should Be More Cautious With One

By Motley Fool Staff – Dec 24, 2021 at 6:00AM

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It may be too early to get excited about Lucid.

In this segment of Motley Fool Live, recorded on Dec. 7, Fool contributors Lou Whiteman and Toby Bordelon make a quick business comparison between Lucid (LCID) and Tesla (TSLA -0.94%), and Tesla comes out ahead.

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Lou Whiteman: But yeah, would I buy it? I'm skeptical of Tesla's valuation. Lucid is 10 percent of Tesla, but honestly, Lucid's business isn't 10% of Tesla's business right now. Lucid hopes to produce 20,000 vehicles, next year, 20,000 vehicles.

Toby Bordelon: Tesla did 240 in the last quarter, 240,000.

Whiteman: Yeah. Quarter million a quarter. Lucid's only taking reservations from, I think maybe it's two dozen countries. I love this company. I think this company could, will, should end up being one of the winners. But no, I just can't.

A lot of people have missed out on fortunes because of valuations, but I'm stuck in the mud on that one, I can't. I agree with you, after the SEC investigation, it didn't even bring it down enough for me to say, I'll take a risk, but that's me. That's my bugaboo evaluation.

I would bet that in the next few years, Lucid will both turn into a better company and I'll probably have a better chance to get in.

Lou Whiteman has no position in any of the stocks mentioned. Toby Bordelon has no position in any of the stocks mentioned. The Motley Fool owns and recommends Tesla. The Motley Fool has a disclosure policy.

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