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But although the company’s ambitious plans look good on paper, the semiconductor chip shortage, which has been plaguing the prospects of the automobile industry this year, could force LCID to place the on-time delivery of its cars on the backseat. Also, according to Morgan Stanley (NYSE:MS) analyst Adam Jonas, the stock is overvalued. He has rated LCID as underweight, with a $12 price target for the next 12 months, indicating a potential 67.7% decline.
LCID has an overall F rating in our POWR Ratings system, which equates to a Strong Sell. Therefore, we think that instead of LCID, it could be wise to bet on quality automobile stocks Volkswagen AG (OTC:VWAGY), Honda Motor Co., Ltd. (HMC), BRP Inc. (DOOO), and Rev Group Inc. (REVG). They are better rated in our proprietary rating system.
