Lucid Motors Stock Wants to be the Next Tesla. Can it?

Regular readers know that one of our mantras is that you can’t invest in the market with the intention of finding the next Microsoft. You’d do nearly as good buying a lottery ticket with your luckiest numbers. We may soon have to tweak that platitude and swap Microsoft with Tesla (TSLA). Five years ago, Tesla sported a market cap of nearly $35 billion. As of this year, it entered rarefied air – one of just five companies (including Microsoft) valued at $1 trillion or more. Tesla stock is half meme, half the future of transportation – a mix of hype and the potential to change the world. To be clear, neither is a prudent investment strategy, but such is the market today.

While there are plenty of contenders vying to be “the next Tesla,” two other electric vehicle (EV) makers have suddenly shot to the top. Last month, we wrote about how Rivian (RIVN) was a risky play on EVs. This month we’ll analyze Lucid Motors (