Shares of luxury electric vehicle (EV) maker Lucid Group (LCID 10.99%) have been on a roll. News earlier this week had the stock soaring as investors cheered a new partnership that will have Lucid's Gravity SUV on the road as a rideshare robotaxi as soon as next year.
Today, news that all Lucid Air sedan models will have the ability to charge utilizing Tesla's Supercharger network beginning July 31 has the stock surging another 9.4% as of midday trading. That brings the rise in Lucid stock to over 50% just since the start of July. That might have some investors wondering if it's too late to join in the rally, or if Lucid stock is still a good buy at today's price of around $3 per share.
All Lucid Air sedan models will be able to charge at Tesla Superchargers beginning later this month. Image source: Lucid Group.
Lucid's path to profitability
Lucid Air owners might be pretty happy about today's news. Access to more than 23,500 of Tesla's charger network certainly could make charging during long road trips more convenient. Not that owners of the luxury Air sedan would have range anxiety to start with. Lucid's Air Grand Touring model has an industry-leading range of up to 512 miles on a full charge.
But that luxury model is a niche product for wealthy EV buyers and isn't how Lucid will reach profitability. That factor is what can make the stock a great investment at this level. The earlier news this week that Lucid is partnering with rideshare company Uber Technologies and self-driving technology company Nuro was more important for Lucid investors.
Uber will add capital to Lucid's balance sheet with a $300 million investment and plans to deploy a fleet of more than 20,000 Lucid EVs starting next year for a premium robotaxi program. Those EVs should help boost Lucid's overall sales volume in the coming years. That, along with any plans to add lower-priced models to its lineup, is what investors need to monitor with an investment in Lucid.
