Lucid is the Tesla of electric vehicle startups, and stock expected to skyrocket nearly 60%, says Bank of America

• Bank of America launched the cover for Lucid Motors on Wednesday with a “buy” rating and a price target of $ 30.
• Analysts led by John Murphy compared the new state-owned company to Tesla and Ferrari.
• Lucid has fallen nearly 25% since its IPO thanks to a SPAC merger with Churchill Capital in July.
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In the vast universe of electric vehicle startups, Lucid Motors is one of the most legitimate.

That’s according to Bank of America, which on Wednesday launched the electric vehicle maker cover with a “buy” rating and a price target of $ 30. This is a 58.3% price jump based on the Lucid close on Tuesday.

Analysts led by John Murphy compared the new state-owned company to Tesla and Ferrari, noting that Lucid’s business model “takes a page” from the books of the two established automakers.

“We are launching the Lucid Cover (LCID) with a purchase note and purchase order of $ 30, based on approximately 3.0x EV / sales and EV / EBITDA of about 37x over our 2025 estimate, “analysts said at TSLA’s initial trading multiples and average multiples of EV OEM SPAC counterparts, but still a noticeable reduction from recent TSLA trading multiples (over five years) , reflecting our view of LCID as one of the most legitimate early-stage EV automakers. “

Lucid supplies components for Formula E, the motorsport championship race for electric cars. This part of their business model is similar to that of Ferrari, which supplies parts for Formula 1, BofA said. Meanwhile, Lucid’s business strategy also mirrors Tesla’s, analysts say, in that it launches the first vehicles at the luxury level before expanding into the mass market.

Lucid jumped 5.6% to an intraday high of $ 20.02 on Wednesday. The stock has fallen nearly 25% since Lucid went public through a SPAC merger with Churchill Capital in July.