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Tesla vs. Lucid: Which EV Stock is Better?

Lucid Air

Tesla vs. Lucid: Which EV Stock is Better?

Key Points

  • Tesla has a market capitalization of $844.48 billion, making it the 7th most valuable company in the world by market cap.
  • Tesla’s vehicle deliveries increased 40% year-over-year (YoY) to 1.31 million in 2022, dominating approximately two-thirds of the EV market in the first three quarters of 2022.
  • Lucid has gained attention for its luxurious electric sedan, the Lucid Air, and has a market capitalization of $16.98 billion.
  • Lucid delivered 1,406 vehicles and reported revenue of $149.4 million in the first quarter of 2023, showcasing the company’s growth and success in the EV market.
  • The demand for electric vehicles is rapidly growing, presenting a massive opportunity for both Tesla and Lucid to increase their market share and boost stock prices.

The electric vehicle (EV) revolution has been gaining momentum, with both Tesla and Lucid emerging as major players in the market. As demand for EVs continues to grow, investors wonder which stock is the better choice — Tesla or Lucid.

Let’s compare both companies and evaluate their respective strengths and weaknesses to determine which EV stock is better for you.

Tesla vs. Lucid: Side-by-Side Comparison

Tesla, Inc.Lucid Group, Inc.
Date Founded20032007
Ticker SymbolTSLALCID
Stock Exchange ListingNASDAQ Global Select MarketNASDAQ Global Select Market
Initial Public Offering (IPO)June 29, 2010July 26, 2021
Stock Price$266.44$7.47
Shares Outstanding3,171,000,0001,831,725,009
Market Capitalization$844.48 billion$16.98 billion
Annual Revenue (2022)$81.46 billion$608.2 million
Stock Splits08/25/2022 – 3:1 split
08/31/2020 – 5:1 split
No stock split history
Data sourced on July 29, 2023 from CompaniesMarketCap.com for Tesla and Lucid.

Tesla vs. Lucid: What Are the Differences?

Tesla and Lucid are both revolutionizing the EV industry. These two companies have established themselves in the EV market with their high-performance cars, innovative technology, and commitment to sustainable transportation. However, there are some key differences between Tesla and Lucid that investors should consider when investing in either stock.

Tesla: The Electric Vehicle Pioneer

Tesla has been the established leader in the EV market for quite some time. Under the visionary leadership of Elon Musk, the company has revolutionized the industry with its innovative technology, impressive vehicle lineup, and forward-thinking approach to sustainability.

One key factor that separates Tesla from its competitors is its strong market capitalization. As of July 29, 2023, Tesla has a market capitalization of $844.48 billion, making it the 7th most valuable company in the world by market cap. As the industry giant, Tesla’s market cap is significantly higher than Lucid’s, reflecting its established presence and investor confidence.

Tesla’s lineup includes models such as the Model S, Model 3, Model X, and Model Y that boast impressive driving ranges, cutting-edge technology, sleek designs, and advanced autonomous driving capabilities. Tesla’s vehicle deliveries increased 40% year-over-year (YoY) to 1.31 million in 2022, while production increased 47% YoY to 1.37 million. Additionally, Tesla’s Supercharger network provides convenient long-distance travel for its customers.

Based on data from Kelley Blue Book, four out of the six top-selling EVs in the U.S. during the first nine months of 2022 were manufactured by Tesla. The Model Y and Model 3, in particular, were significantly more popular than other electric car options. Tesla dominated approximately two-thirds of the EV market in the first three quarters of 2022.

These factors, including Tesla’s high brand loyalty, have contributed to its consistent demand and impressive sales figures.

Tesla Q1 2023 Financial Results

In Q1 2023, total sales increased 24% YoY to $23.3 billion. Tesla also ended the first quarter with a record number of deliveries, with sales rising by 36% YoY. The Model Y overtook traditional ICE vehicles as the most popular passenger car model after Tesla cut the Model 3 and Model Y costs in January.

In addition, Tesla ended Q1 2023 with the second-highest EV market share globally. The company has a global market share of 16%, behind current leader BYD Auto, which has a global market share of 21%.

Kia EV9 vs. Tesla Model Y
Tesla has been leading the EV market for some time now, but Lucid is a formidable competitor.

©solepsizm/Shutterstock.com

Lucid: The Rising Star

While Tesla may be the reigning king of the EV market, Lucid is steadily making its mark as a competitor. Lucid has gained attention mainly for its luxurious electric sedan, the Lucid Air.

Its flagship model boasts impressive driving ranges, an advanced electric powertrain, and cutting-edge technology, targeting customers looking for high-performance and sustainable transportation. Additionally, Lucid plans to expand its product lineup by launching additional models in the coming years.

As of July 29, 2023, Lucid has a market capitalization of $16.98 billion. While Lucid’s market cap is much smaller than Tesla, the company has shown promising signs of growth. For example, Lucid produced 7,180 vehicles in 2022 and delivered 4,369, bringing its sales to just over $608 million. With their recent production and delivery milestones, it’s clear that Lucid is heading in the right direction.

Lucid has also attracted investors such as the Public Investment Fund (PIF) of Saudi Arabia, who now own more than 60% of the company. This investment has contributed significantly to Lucid’s financial health and given the company more resources to develop its vehicles.

Lucid Q1 2023 Financial Results

Lucid had positive financial results for the first quarter of 2023, reporting revenue of $149.4 million during this period. Additionally, Lucid delivered 1,406 vehicles within the same timeframe. This news showcases the company’s growth and success in the EV market.

The first quarter’s sales were almost $149 million, up 159% from last year’s period. With total liquidity of around $4.1 billion at the end of Q1, including just over $3.4 billion in cash, cash equivalents, and investments, Lucid believes they have enough money to keep the company running until Q2 of 2024.

Rivian vs. Lucid
The Lucid Air is boosting the EV manufacturer’s visibility and sales.

©gg5795/Shutterstock.com

The Demand for Electric Vehicles

The demand for electric vehicles is rapidly growing, and it’s no surprise that both Tesla and Lucid are taking advantage of this opportunity. With the global push to reduce carbon emissions, more consumers are turning to EVs for transportation. This shift in consumer preferences presents a massive opportunity for Tesla and Lucid to increase their market share and boost stock prices in the long run.

Production Capabilities

Production capabilities are important when evaluating which EV stock is better for investment purposes. Both Tesla and Lucid have developed innovative technologies that have allowed them to produce high-quality EVs efficiently.

However, Tesla has a notable advantage here due to its established production facilities across the globe, giving it access to larger markets than Lucid currently has access to. This could give Tesla a competitive edge over Lucid regarding stock performance, as investors may be more likely to choose a company that can meet large-scale demand.

Competition and Financial Stability

When considering which EV stock is better, it’s also important to consider competition from other automakers entering the EV market and each company’s financial stability. In terms of competition, traditional automakers like Volkswagen and General Motors are increasingly investing in EV technology, which could threaten both Tesla and Lucid’s respective market shares in the future.

On the other hand, financial stability is also key when looking at potential investments; investors should consider each company’s balance sheet when deciding which stocks offer better returns over time.

Final Thoughts

Choosing which EV stock is better between Tesla and Lucid ultimately depends on various factors, including risk tolerance, growth potential, and individual investment goals. Tesla’s track record of dominance in the industry, extensive market capitalization, and impressive sales figures make it a safe bet for many investors.

However, don’t underestimate Lucid’s potential for growth. It’s a young company with an exciting product, Lucid Air, and a growing base of enthusiastic customers. Lucid could be a worthy option to consider for those looking to take a calculated risk and potentially reap substantial rewards.

Investing in individual stocks always involves risks, and thorough research and analysis are crucial before making any investment decisions. It’s very important that you consult with a financial advisor or conduct your own due diligence to make an informed choice that aligns with your investment strategy.

Tesla vs. Lucid: Which EV Stock is Better? FAQs (Frequently Asked Questions) 

What is the market capitalization of Tesla?

As of July 29, 2023, Tesla has a market capitalization of $844.48 billion.

What is the market capitalization of Lucid?

As of July 29, 2023, Lucid has a market capitalization of $16.98 billion.

What is the stock price of Tesla?

Tesla has a stock price of $266.44 per share, as of July 29, 2023.

What is the stock price of Lucid?

Lucid has a stock price of $7.47 per share, as of July 29, 2023.

What is the global EV market share?

Around 14% of passenger car sales worldwide in 2022 were electric vehicles, an increase of about 5.3% points from the previous year.

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