On Tuesday, "Mad Money" host Jim Cramer gave his outlook for the best-performing stocks in the Nasdaq 100 in 2021. Part of his outlook was Lucid Motors (NASDAQ: LCID), one of the most intriguing electric vehicle stocks currently in the market. Even though Lucid is still a relatively new company, many investors are looking past this, and CNBC's Cramer doesn't think it's a good idea.
According to NASDAQ, Lucid Motors' stock has risen more than 68% in the last three months. The EV automaker's stocks skyrocketed after a merger earlier in the year with special purpose acquisition company (SPAC) Churchill Capital Corp IV but later gave up most of its gains. However, the stock rose again due to specific short-term catalysts.
Cramer quickly pointed out that many investors are out for the next Tesla, and Lucid seems like a viable option. However, he cautioned investors that Lucid Motors is still in the early stages of scaling up production.
The California-based electric vehicle company started commercial production in September and announced the kick-off of its Lucid Air electric sedan deliveries in late October. Peter Rawlinson, Lucid Motors CEO, told CNBC that the EV start-up has plans to build factories in the Middle East and China.
In 2021, Lucid Group shares rose 280%. "Mad Money" host feels the timing is incorrect, especially with another lockup expiration coming later in the month. "As much as I love the story, I hate the timing." He said.
After a successful launch of the Lucid Air, the California-based EV start-up will also bring an SUV called Gravity into its lineup in 2023. While both these announcements got a pompous reception, NASDAQ warns that investors need to be aware of the company's high volatility before investing any money into it.
NASDAQ InvestorPlace segment also noted that it is worth considering there are not many near-term catalysts left for investors to exploit. Therefore, Lucid stock will continue meandering before the penny drops, and as a result, the shares might experience previous lows.
Cramer quickly pointed out that many investors are out for the next Tesla, and Lucid seems like a viable option. However, he cautioned investors that Lucid Motors is still in the early stages of scaling up production.
The California-based electric vehicle company started commercial production in September and announced the kick-off of its Lucid Air electric sedan deliveries in late October. Peter Rawlinson, Lucid Motors CEO, told CNBC that the EV start-up has plans to build factories in the Middle East and China.
In 2021, Lucid Group shares rose 280%. "Mad Money" host feels the timing is incorrect, especially with another lockup expiration coming later in the month. "As much as I love the story, I hate the timing." He said.
After a successful launch of the Lucid Air, the California-based EV start-up will also bring an SUV called Gravity into its lineup in 2023. While both these announcements got a pompous reception, NASDAQ warns that investors need to be aware of the company's high volatility before investing any money into it.
NASDAQ InvestorPlace segment also noted that it is worth considering there are not many near-term catalysts left for investors to exploit. Therefore, Lucid stock will continue meandering before the penny drops, and as a result, the shares might experience previous lows.